HF 

.     iSOQa. 

DOCUMENTS 

DfPT. 


STATE     OF     NEW     YORK 

PuBLfc  Service  Commission 

SECOND     DISTRICT 

Atjiaxv    Decembo-  12,  1908. 


To. 


The  following  order  has  been  adopted  by  this  CommissioOj  aad  is  hereby 
served  on  you.    Please  acknowledge  receipt  at  once. 

Yours  very  truly. 


State  of  New  Y<«k, 

Office  ot  tbe  Public  5emce  CommiBsion 

SECONO   DISTRICT 


i- 


I  hare  compared  the  following  copy  with  the  original  on  file  in  this  office, 
and  I  do  HEREBY  CERTIFY  the  same  to  be  a  correct  transcript  therefrom 
and  of  the  whole  thereof. 

XQitnees  my  hand  and  tbe  Seal  of  Office  of  the  Public  Ser- 
Tice  Commission,  Second  District,  at  the  City  of 
Albany,  this  twelfth  day  cf  December,  one  thousand 
nine  hunoTe-1  i.nd  eight. 


Seeretarjf. 


274665 


State  of  Xew  York, 
Public  Sebtick  Commission,  Seooxd  Distkict. 
At  a  session  of  the  Public  Service  Commission,  Second 
District,   held  at  the   Capitol,   Albany,   on  the   lat 
dav  of  December,  1908. 
Present : 

Fbaxk  W.  Stetexs,  Chairman, 
Thomas  M.  Osborne, 
Mabtix  S.  Decker, 
James  E.  Sague, 
JoHX  B-  Olmsted, 

Commissioners. 

Ordered:  That,  except  as  hereinafter  provided: 

1.  On  and  after  Jannary  1,  1909,  every  electrical  corporation  whose  revenues' 
from  electric  operations  as  defined  in  the  hereto  annexed  schedule  marked 
*'  Schedule  A"  were  during  the  year  ended  June  30,  1907,  below  the  sum  of 
five  hundred  thousand  dollars  <$o00,000i  shall  keep  upon  its  books  the  ac- 
counts prescribed  or  defined  in  the  said  "  Schedule  A",  so  far  as  the  said 
accounts  are  pertinent  to  the  facts  and  circumstances  of  the  said  corporation. 
The  term  electrical  corporation  is  used  herein  in  the  sense  defined  in  the 
Public  Service  Commissions  Law. 

2.  On  and  after  the  date  of  service  of  this  order  on  any  such  electrical 
corporation,  such  corporation  shall  not  charge  to  any  account  representing 
cost  of  property  any  discount  or  commission  on  securities  issued  by  the  said 
corporation,  but  shall  charge  all  such  discounts,  commissions,  and  other 
expense  connected  with  the  issue  of  securities  subsequent  to  the  said  date  ot 
service,  in  accordance  with  the  directions  contained  in  the  definitions  of  the 
account  named  Organization,  and  the  account  named  Unamortized  Debt  Div 
count  and  Expense,  in  the  said  "  Schedule  A".  • 

3.  On  and  after  .January  1,  1909,  every  such  electrical  corporation  shall  keep 
upon  its  books  the  accounts  prescribed  or  defined  in  the  hereto  annexed 
schedule  marked  "  Schedule  B ",  so  far  as  the  same  are  pertinent  to  tbo 
facts  and  circumstances  of  the  said  corporation. 

4.  During  the  year  beginning  January  1,  1909,  any  said  corporation  may 
for  purposes  of  comparison  with  prior  years  keep  on  its  books  any  account 
pertaining  to  revenues,  revenue  deductions,  income  deductions,  and  appro- 
priations fas  defined  in  the  said  "Schedule  B")  which  it  had  on  its  hooka 
during '-the  year  begun  January  1,  190S;  provided  that  on  or  before  January 
I,  1909,  there  be  filed  with  the  Public  Service  Commission  a  statement  con- 
taining a  list  of  the  said  accounts  pertaining  to  the  year  b^un  January  1, 
1908,  and  definitions  of  such  accounts. 

5.  For  purposes  of  improving  the  efficiency  of  administration  and  operation, 
any  corporation  may,  unless  or  until  otherwise  ordered,  keep  upon  its  bocAs 
any  temporary  or  experimental  accounts  and  any  accounts  covering  particular 
divisions  of  its  operations,  provided  that  in  respect  of  each  such  temporary, 

[31 


4  PyiiikiC,S^ifcVl03ff«  Commission,  Second  District 

•experimental,  or  divisional  account,  the  said  corporation  shall  file  with  tlw 
Public  Service  Commission,  at  least  ten  days  in  advance  of  the  time  when 
the  said  account  is  to  be  instituted,  a  statement  showing  the  name  of  the 
«aid  account,  the  date  when  it  is  to  be  instituted,  the  purpose  for  which  it  la 
to  be  kept,  the  period  of  time  during  which  it  is  to  be  kept,  and  a  clear 
■aai  accurate  definition  of  the  classes  of  items  and  facts  to  be  contained  in 
the  said  account;  and  in  case  of  a  divisional  account,  the  definition  of  the 
"division  covered.  Upon  compliance  with  the  provisions  of  this  paragraph, 
«iiy  account  herein  prescribed  or  defined  in  either  said  "  Schedule  A"  or  said 
^'  Schedule  B  "  may  be  subdivided. 

6.  All  notices  herein  required  to  be  filed  concerning  accounts  shall  be  up(Hi 
•sheets  9i^  inches  by  12  inches  in  size,  and  shall  be  entitled  in  the  name  of 
the  corporation  filing  said  notices,  followed  by  a  brief  statement  of  the  charae- 
i)cr  of  the  accounts  covered  by  the  notice. 


SCHEDULE  A. 


BALANCE  SHEET  OR  IXDICAXT  ACCOUNTS. 

1.  Electrical  Cotporations  and  Electric  Operations  defined. —  Section  2 
of  the  Public  Service  Commissions  Law  defines  eleetrical  corporatum  m» 
follows : 

I  2.  .  .  .  The  term  "  electrical  corporation  "...  inclades  eTery  corpora- 
tion, company,  association,  Joint  stock  association,  partnership  and  person,  their 
leflBees,  trustees  or  receirers  appointed  by  any  conrt  whatsoever  (other  than  a  rail- 
road or  street  railroad  corporation  generating  electricity  for  its  own  use  ciclu- 
■iTely).  owning,  operating,  managing  or  controlling  any  plant  or  property  for 
generating  and  distribnting,  or  generating  and  selling  for  distribation,  or  distribat- 
faig  electricity  for  light,  heat  or  power  or  for  the  transmission  of  electric  current 
for  sach  purposes. 

Electric  operations,  as  the  term  is  hereinafter  used,  include  all  acts  and 
transactions  directly  connected  with  the  operation  of  a  plant  for  the  produc- 
tion of  electric  energy,  the  transmission  thereof  and  the  supply  thereof  to 
consumers  for  light,  heat,  or  power,  and  all  operations  incident  thereto,  in- 
eluding  the  collection  of  revenues  therefor  and  the  disposition  of  byproducts 
produced  in  connection  therewith. 

3.  Accounts  to  be  kept  by  double-entry  method. —  All  accoimts  kept  by  anj 
corporation  or  person  within  the  scope  of  the  present  order  shall  on  and  after 
January  1,  1909,  be  kept  by  the  double-entry  method. 

XoTE. —  This  requirement  is  not  intended  to  apply  to  purely  statistical  accounts. 
CAPITAL  ACCOUNTS.- 

3-  Capital  defined. —  As  the  term  is  used  herein,  by  capital  of  a  corporation 
is  meant  all  property  devoted  to  the  rendering  of  the  services  or  the  pro- 
duction of  the  commodities  which  are  within  the  purposes  of  the  corporation. 

4.  Fixed  Capital  defined. —  Capital  which  has  an  expectation  of  life  in 
service  of  more  than  one  year  (exception  being  made  of  hand  and  other  small 
portable  tools  liable  to  be  l<Kt  or  stolen*)  is  called  fijced  capital. 

5.  Floating  Capital  defined. —  Capital  other  than  fixed  capital  is  called  float- 
ing capital. 

6.  General  Capital  and  Departmental  Capital  defined. —  Fixed  capital  is  di- 
visible into  general  capital  and  departmental  capital,  general  capital  being 
that  which  is  indiscriminately  available  for  the  use  of  two  or  more  classes 
of  operations,  while  departmental  capital  is  that  assigned  solely  or  principally 
to  a  single  class  of  operations. 


'Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall,  when  first 
acquired  and  before  issned  for  use,  be  carried  in  a  suitable  Materials  and  Supplies 
account ;  when  issued  they  shall  be  charged  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
appropriate  tangible  capital  account,  and  remain  therein  so  long  aa  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  Issued  and  such  persons  ara 
nade  responsible  therefor. 

[51 


6  Plblic  Sekvice  Commission,  Second  District 

7.  Landed  Capital  and  Non-landed  Capital  defined. —  Fixed  capital  is  also 
divisible  into  landed  capital  and  non-landed  capital.  Landed  capital  includes 
all  interests  in  land  (exclusive  of  improvements  thereon)  the  term  of  which 
is  more  than  one  year.  All  other  fixed  capital  is  herein  called  non-landed 
capital. 

8.  Intangible  and  Tangible  Capital  distinguished. —  Non-landsd  capital  is 
divisible  into  intangible  and  tangible.  Intangible  capital  comprises  organ- 
ization, franchises,  patent-rights,  and  all  other  intangible  propertj'  within 
the  definition  of  fixed  non-landed  capital  as  above  stated.  Tangible  capital 
comprises  structures  and  equipment  having  an  expectation  of  life  in  service 
of  more  than  ona  year.  Because  of  their  liability  to  loss  or  theft,  hand  and 
other  small  portable  tools  are  excepted  from  tangible  capital,  and  the  cost 
of  such  tools  when  issued  is  required  to  be  treated  as  a  part  of  the  operating 
expenses.' 

9.  Further  Classification  of  Capital. —  Capital  is  also  divisible  into  original 
capital,  additions,  betterments,  and  renewals  and  replacements,  as  defined 
below.  Charges  to  capital  accounts  shall  show  these  divisions  as  set  forth 
in  paragraph  21,  infra. 

10.  Original  Capital  defined. —  Original  Capital  is  that  put  into  service  at 
the  outset  of  an  enterprise. 

11.  Additions  defined. — Additions  include  additional  structures,  facilities,  or 
equipment  not  taking  the  place  of  anything  previously  existing. 

12.  Betterments  defined. —  Betterments  include  the  enlargement  or  improve- 
ment of  existing  structures,  facilities,  and  equipment. 

13.  Renewals  defined. — liencuals  include  all  extensions  of  terms  of  years 
in  land  and  tangible  fixed  capital,  and  all  extensions  of  the  life  period  of 
franchises  and  other  intangible  fixed  capital. 

14.  Replacements  defined. —  Replacements  include  all  substitutions  for  capi- 
tal exhausted  or  become  inadequate  in  service,  the  substitutes  having  sub- 
stantially no  greater  capacity  than  the  things  for  which  they  were  substi- 
tuted. When  a  substitute  has  a  substantially  greater  capacity  than  that 
for  which  it  is  substituted,  the  cost  of  substitution  of  one  of  the  same 
capacity  as  the  thing  replaced  should  be  charged  as  a  replacement,  and  the 
remaining  portion  of  the  cost  of  the  actual  substitute  should  be  charged  as 
a  betterment. 

15.  Repairs  defined. —  When  through  wear  and  tear  or  through  casualty  it 
becomes  necessary  to  replace  some  part  of  any  structure,  facility,  or  unit 
of  equipment,  and  the  extent  of  such  replacement  does  not  amount  to  a  sub- 
stantial change  of  identity  in  such  structure,  facility,  or  unit  of  equipment, 
the  replacement  of  such  part  is  to  be  considered  a  repair,  and  the  cost  of 
Buch  repair  is  to  be  treated  as  an  operating  expense  and  must  not  be  charged 
as  a  replacement  in  any  capital  account. 


*  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolon  shall,  when  first 
acquired  and  before  issued  for  use,  be  carried  in  a  suitable  Materials  and  Supplies 
account ;  when  issued  they  shall  be  charged  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
appropriate  tangible  capital  account,  and  remain  therein  so  long  as  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are 
made  responsible  therefor. 


AccousTS  POK  Electkicai.  Cobposatioxs       7 

16.  Fiist  eatiies  must  enable  identificatiea. —  Throngfaout  all  eaintal  ae- 
eoonts,  the  first  entry  in  respect  of  a^j  particular  thing  shall  describe  it 
with  such  particnlaritT  as  to  enable  its  identification,  and  shall  give  it  a 
distingnishing  name,  nnmber,  or  other  designation  by  which  it  shall  thoe- 
after  be  designated  in  every  enfary  in  any  capital  aeeonnt  which  in  ai^  mj 
emwems  it.  In  the  ease  of  eontimioas  slruclures  like  railroad  txacii:,  or 
eleetrie  line,  or  pipe  line,  soch  strnetnres  shall  be  itemized  to  the  extent  that 
no  item  shall  contain  more  than  one  operating  dirision  or  more  than  one 
fype  of  eonstmction.  and  the  entry  in  relation  to  any  item  shall  describe  the 
mxBy  weight,  type,  and  other  principal  physical  characteristics  of  the  chief 
constituent  parts,  together  with  thar  spacing  if  disetmtinaoas. 

17.  Costs  «f  new  capital  to  be  actual  money  costs. —  All  charges  made  to 
capital  or  other  accounts  on  or  after  January  1,  1909,  shall  be  the  aetoal 
mm^  cost  of  the  things  in  respect  of  which  th^  are  made.  Wh«i  the  ctm- 
sideration  actually  given  for  the  thing  in  respect  of  which  a  charge  to  a 
capital  account  is  made  is  anything  other  than  money,  the  actual  considera- 
tion shall  be  dascribed  in  the  entry  with  sufficient  fullness  and  particularity 
to  identify  it,  and  the  amount  charged  shall  be  the  actual  mon^  value  of 
such  consideration  at  the  time  of  the  transaction. 

18.  Discounts  upon  secnxities  not  to  be  charged  to  capital  accounts. —  Dis- 
counts upon  securities  and  other  commercial  paper  issued  in  payment  for 
capital  are  to  be  provided  for  in  other  accounts  and  must  in  no  ease  be 
charged  to  the  capital  accounts. 

19.  Costs  of  labor,  materials^  acd  si^plies. — Cost  of  /o6or  (employed  in  eou- 
stmction)  includes  not  only  wa^es,  salaries,  and  fees  paid  employees,  but 
also  such  personal  expenses  of  employees  as  are  borne  by  the  corporation. 
Cost  of  material  and  gtippUe*  consumed  in  eonstmction  Is  the  cost  at  the 
places  where  they  enter  into  construction,  including  cost  of  transportation 
and  inspection  when  specifically  aaa^n^le.  If  such  materials  and  supplies 
are  passed  through  storehouses,  their  cost  entered  in  the  account  may  include 
a  suitable  proportion  of  store  expense. 

20w  Withdrawals  or  retirements. —  When  anything  is  withdrawn  or  retired 
frcMU  senriee,  the  amount  at  which  such  thing  stood  charged  in  the  capital 
account  shall  be  credited  to  the  capital  account  in  which  it  stood  charged 
at  the  time  of  withdrawal,  and  tiie  entry  of  such  credit  shall  cite  by  name 
and  page  of  hock,  or  other  record  the  original  entry  of  cost  of  the  thing 
withdrawn.  If  there  is  no  such  original  entry,  that  fact  shall  be  stated  in 
ccMinection  with  the  credit  entry,  and  the  actual  amount  originally  charged 
shall  be  credited.  If  such  amount  is  not  known,  it  shall  be  estimated,  the 
&cts  upon  which  the  estimate  is  based  shall  be  shown,  and  the  amount  thus 
estimated  to  be  the  original  charge  in  respect  of  such  thing  withdrawn  shall 
be  credited. 

ai.  Paxticalazs  required  to  be  shown  in  entnes. —  Every  charge  made  to  a 
capital  account  on  or  after  January  1,  1909,  shall  show  whether  the  thing 
in  respect  of  which  the  charge  is  made  is  original  capital,  or  an  addition,  a 
betterment,  a  renewal,  or  a  replacement.  If  the  thing  is  a  bettmnent,  the 
entry  shall  designate  the  thing  enlarged  or  improved  and  shall  cite  by  name 
and  page  of  book  or  other  record  the  original  entry  of  cost  of  such  thing 
'enlarged  or  improved.     If  the  thing  to  which  any  charge  hereafter  made  re- 


8  Public  Service  Commission,  Second  Disteict 

lates  is  a  renewal  or  a  replacement,  the  entry  made  in  respect  thereof  shall 
designate  the  thing  renewed  or  replaced  and  shall  cite  by  name  and  page 
of  book  or  other  record  the  original  entry  or  entries  of  cost  of  such  thing 
renewed  or  replaced.  If  there  is  no  entry  in  the  accounts  of  the  corporation 
showing  the  cost  (to  the  corporation)  of  the  thing  bettered,  renewed,  or  re- 
placed, that  fact  shall  be  stated  in  the  entry  describing  the  betterment, 
renewal,  or  replacement,  and  the  original  cost  of  such  thing  to  the  corpora- 
tion shall  be  stated.  Such  cost  shall  be  estimated  if  not  known,  and  when 
estimated  the  basis  of  such  estimation  shall  be  shown. 

22.  Betterments  involving  partial  destruction  of  thing  bettered. —  If  any 
betterment  involves  the  partial  destruction  or  partial  reconstruction  of  the 
thing  bettered,  only  such  portion  of  the  cost  of  the  change  shall  be  charged 
as  a  betterment  as  will  when  added  to  the  original  cost  (estimated  if  not 
known)  of  the  thing  bettered  give  the  cost  of  reconstruction  or  replacement 
of  the  thing  as  bettered,  and  the  remainder  of  the  cost  of  the  change  (account 
being  taken  of  any  salvage)  shall  be  charged  to  the  appropriate  repair 
account. 

E.  g.,  a  building,  original  cost  unknown  but  estimated  to  be  $15,000,  is  bettered 
by  tlie  construction  of  an  elevator  shaft,  and  its  stairways  are  modified  so  as  to  be 
fireproof ;  the  actual  expenditure  for  these  changes  is  $3.000 ;  the  estimated  cost 
of  replacement  of  the  building  (as  modified)  with  one  equally  serviceable  and  with 
an  equal  expectation  of  life  is  $16,000 ;  the  charge  to  capital  account  as  a  better- 
ment should  be  $1,000,  and  the  remainder  ($2,000)  of  the  expenditure  should  be 
charged  to  the  appropriate  repairs  account. 

23.  Plant  and  equipment  and  other  capital  purchased. —  When  any  fixed 
capital  in  the  form  of  a  going  or  completed  plant  is  purchased,  an  appraisal 
of  such  capital  so  acquired  shall  be  made,  and  the  different  constituent  ele- 
ments of  the  plant  (and  equipment,  if  any)  or  other  capital  acquired  shall 
be  appraised  at  their  structural  value;  that  is  to  say,  at  the  estimated  cost 
of  replacement  or  reproduction  less  deterioration  to  the  then  existing  condi- 
tion through  wear  and  tear,  obsolescence,  and  inadequacy.  If  the  actual 
money  value  of  the  consideration  given  for  the  plant  or  other  capital  was 
at  the  time  of  the  acquisition  in  excess  of  such  appraised  value,  the  excess 
ahall  be  charged  to  the  account  "  Other  Intangible  Electric  Capital,"  and  the 
appraised  values  of  the  constituent  elements  shall  be  charged  to  the  appro- 
priate accounts  as  designated  in  the  following  definitions  of  accounts  for  fixed 
capital.  If  the  actual  money  value  of  the  consideration  given  was  not  in 
excess  of  such  appraised  value,  such  actual  money  value  shall  be  distributed 
through  the  said  accounts  in  proportion  to  the  said  appraised  value  of  the 
constituent  elements  appropriate  to  the  respective  accounts.  Full  report  of 
the  contract  of  acquisition,  the  consideration  given  therefor,  the  determina- 
tion of  the  actual  money  value  of  such  consideration,  the  appraisal,  and  the 
amounts  charged  to  the  respective  accounts  for  each  plant  or  other  such  fixed 
capital  purchased,  will  be  required  to  be  made  to  the  Public  Service  Commia- 
sion,  and  the  purchaser  will  be  required  to  procure  in  connection  with  the 
acquisition  of  any  such  plant  or  other  fixed  capital  all  existing  records,  memo- 
randa, and  accounts  in  the  possession  or  control  of  the  grantor  relating  to 
the  construction  and  improvement  of  such  plant,  and  to  preserve  such  records 
memoranda,  and  accounts  until  authorized  by  law  to  destroy  or  otherwise 
dispose  of  them. 


AccoimTS  FOB  Electbicai.  Cokporatioss  9 

44.  Dcfinitioiis  of  Fixed  Capital  acconatL — In  the  foDowing  definitions  of 
aeeoants  the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solelj  for 
coBwakBee  of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 
ElOO.  Fixed  Capitai^  DECEaiBEB  31,  190S. 

Charge  to  this  aeeoont  aU  the  Fixed  Capital  of  the  aeeoonting  person  or 
«orporati<Hi  deroted  to  electric  operations  as  soeb  capital  stood  at  th« 
cloae  of  December  31,  1908.  Such  charges  shall  be  made  at  the  fignrei  mt 
which  such  capital  was  carried  on  the  books  of  the  said  person  or  corporation 
on  that  date.  Whoi  any  capital  indoded  in  such  account  is  retired  froat 
service,  the  amount  at  which  it  is  ehuged  thearein  shall  be  credited  to  this 
aeeount;  the  amount  of  depreciation  or  other  amortization  thereon  appli- 
cable to  the  period  subsequent  to  December  31.  1908,  shall  be  charged  to 
account  No.  374,  "Accrued  Amortization  of  Capital,"  proper  aeeoont  shall  be 
taken  of  ai^  ^rage,  and  the  remainder  of  the  amount  originally  diarged 
to  capital  shall  be  concurrently  charged  to  the  Corporate  Surplus  or  Deficit 
account  (or  equitalent  account  carried  on  the  boc^a  on  December  31,  1906), 
nnless  ttiere  was  carried  on  the  books  at  that  date  a  reaerre  to  corer  retire- 
ment of  capital  from  serrice,  in  which  ease  the  said  concurrent  diarge  ahall 
be  made  to  such  retiremoit  reserre  aeeoont.  If  the  amoont  at  which  the  said 
capital  in  service  on  December  31,  1908,  and  subsequenth-  retired  from  service, 
was  included  in  the  said  account  is  not  disclosed  on  the  books  and  reeorda 
of  the  accounting  person  or  corporation  and  is  not  within  the  knowledge  of 
such  person  or  corporation  or  officers  or  other  employees  thereof,  it  shall  be 
estimated,  and  such  estimated  amount  shall  be  treated  as  is  above  directed  for 
the  actual  amount,  the  fact  of  estimation  being  stated  in  the  entry. 

Note. —  Corporations  will  be  required  to  carry  as  snb-accoonts  of  the  accooat 
"Fixed  Capital.  December  31.  lOOe.**  the  several  accoants  on  their  books  on  that 
date  whidi  are  eMaUned  to  make  np  the  said  aeeoont.  and  to  famish  lafwaatlMi 
coacemlng  snch  aob-accoants  In  their  ananal  reports. 

The  following  capital  aecoimts  are  prescribed  for  transactions  subseqneat 
to  Deconber  31,   1908: 

£110.  Laxd  Devoted  to  Electuc  Operations. 
Charge  to  this  aceonnt  the  cost  of  the  accounting  corporation's  i^M**! 
capital  whldi  is  devoted  to  electric  operations  as  hereinbefore  defined.  Thia 
includes  land  occupied  by  generating  stations  and  their  appurtenances,  rights 
of  way- for  transmission  and  distribution  lines  and  other  electric  operatimu; 
abo  those  for  canal  and  pipe  lines,  water  rights,  and  rights  of  pondage,  flow- 
age,  and  submermon,  where  such  rights  have  lives  in  excess  of  one  year  firaoi 
the  date  when  sodi  land  is  placed  in  service.  Such  cost  inehidea^  wkeu 
•ssMBied  or  paid  6y  ike  purduuer  in  its  tmm  hehalf,  cost  of  regisirata<m  of 
title,  cost  of  examination  of  title,  conveyancer's  and  notary's  fees,  pnrehasiBg 
agent's  conmussions  or  fees,  or  proportion  of  purchasing  agenfs  Hilary,  taxes 
aeemed  to  date  of  transfer  of  title,  and  all  liois  upon  the  title  acquired; 
also  costs  of  obtaining  consents  and  payments  for  abutting  damages. 

NoiB  A. —  Cost  of  bondings  and  other  Improvements  most  not  be  inetaded  la  Uils 
aeeoant. 

MoTK  B. —  If  at  the  tftme  of  aeqnlaltJon  of  an  Interest  ta  lands  It  f  tlgafls  t* 
fcuildings  or  other  ImproTenwBts  thereon,  whkh  Improveaacnts  are  devoted  by  the 
corporation  to  Its  deetric  operational  and  the  contract  of  acqoisltkm  does  aot  de> 
tetmine  the  prfco  of  sach  Improvements,  they  shall  be  appraised  at  thrir  fair  cask 
valoe  for  use  la  waA  operatloBs,  and  sach  apinaiaed  value  shall  be  charsed  to  ths 


10  Public  Sekvice  Commission,  Second  District 

appropriate  structures  account,  and  excluded  from  the  account  "  Land  Devoted  to 
Electric  Operations  ".  If  such  Improvements  are  not  devoted  to  electric  operations 
but  are  devoted  to  other  operations  or  held  as  investments,  the  cost  (or  appraised 
value  if  the  cost  Is  not  determined  In  the  contract  of  acquisition)  shall  be  charged 
to  the  appropriate  Investment  account  or  capital  account  for  other  operations.  If 
the  improvements  are  removed  or  wrecked,  the  salvage  (less  the  cost  of  removal 
or  wreckage)  shall  be  excluded  from  the  account  "  Land  Devoted  to  Electric  Opera- 
tions ".  The  entries  in  this  account  must  be  made  in  such  wise  as  to  enable  the 
corporation  to  show  in  its  annual  report  to  the  Public  Service  Commission  the 
subdivision  of  the  cost  of  its  land  devoted  to  electric  operations  into  the  following: 

Land  Occupied  by  Generating  Stations. 

Land  Occupied  by  Outside  Sub-stations. 

Water  Rights. 

Other  Land  Devoted  to  Electric  Operations. 

101.  Obganization. 
Charge  to  this  account  all  fees  paid  to  governments  for  the  privilege  of 
incorporation,  and  all  office  and  other  expenditure  incident  to  organizing  the 
corporation  or  other  enterprise  and  putting  it  in  readiness  to  do  business. 
This  includes  cost  of  preparing  and  distributing  prospectuses,  cost  of  solicit- 
ing subscriptions  for  stock  (but  not  for  loans  nor  for  the  purchase  of  bonds 
or  other  evidence  of  indebtedness),  cash  fees  paid  to  promoters,  and  the  actual 
cash  value  at  the  time  of  organization  of  securities  paid  to  promoters  for  their 
services  in  organizing  the  enterprise,  counsel  fees,  cost  of  preparing  and  issu- 
ing certificates  of  stock,  and  cost  of  procuring  certificates  of  necessity  from 
state  authorities,  and  other  like  costs.  Like  costs  incident  to  preparing  and 
filing  certificates  of  authorization  of  increase  of  capital  stock,  and  to  the 
negotiation  and  issue  of  stock  thereunder,  shall  be  classed  as  additions.  Cost 
of  preparing  and  filing  certificates  of  amendment  of  articles  of  incorporation 
shall  be  classed  as  a  betterment.  Cost  of  preparing  and  filing  papers  in  con- 
nection with  the  extension  of  the  term  of  incorporation  or  with  reincorporation 
consequent  upon  reorganization  shall  be  classed  as  a  renewal.  This  account 
shall  not  include  any  discounts  upon  stocks  or  other  securities  issued,  nor 
shall  it  include  any  costs  incident  to  negotiating  loans  or  selling  bonds  or 
other  evidence  of  indebtedness. 

E102.  Franchises   (Electbic). 

To  this  account  shall  be  charged  "  the  amount  (exclusive  of  any  tax  or  an- 
nual charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof 
as  the  consideration  for  the  grant  of  such  franchise  or  right"  (section  69 
of  the  Public  Service  Commissions  Law)  as  is  necessary  to  the  conduct  of 
the  corporation's  electric  operations.  If  any  such  franchise  is  acquired 
by  mesne  assignment,  the  charge  to  this  account  in  respect  thereof  must 
not  exceed  the  amount  actually  paid  therefor  by  the  corporation  to  its  as- 
signor, nor  shall  it  exceed  the  amount  specified  in  the  statute  above  quo'ted. 
Any  excess  of  the  amount  actually  paid  by  the  corporation  over  the  amount 
specified  in  the  statute  shall  be  charged  to  the  account  "  Other  Intangible 
Electric  Capital  ".  If  any  such  franchise  has  a  life  of  not  more  than  one  year 
after  the  date  when  it  is  placed  in  service,  it  shall  not  be  charged  to  this  ac- 
count but  to  the  appropriate  accounts  in  "  Operating  Expenses,"  and  in  "  Pre- 
payments "  if  extending  beyond  the  fiscal  year. 

Payments  made  to  the  State  or  to  some  subdivision  thereof  as  a  considera- 
tion for  granting  an  extension  for  more  than  one  year  of  the  life  period  of  a 
franchise  shall  be  classed  as  renewals.     Those  made  as  a  consideration  for 


AccocxTS  FOR  Electrical  Corporatioxs      11 

franchises  or  crtensions  thereof  covering  additioiul  territory  to  he  operateJ 
fts  a.  part  of  an  existing  srstem  shall  be  classed  as  betterments.  If  the  fran- 
chiaes  cover  separate  and  distinct  new  enterprises,  the  payments  therefor  sbaB 
be  daaaed  as  original. 

XOTK. — Annnal  or  more  freqnent  paymnits  in  respect  of  franchises  must  not  be 
diarsed  to  this  acconnt  bat  to  tbe  appropriate  tax  or  operating  expense  acoooBt. 

E103.  Patest-bights  (Electric). 
Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  what  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  vhich  are  necessary  to  the  economical  conduct  of  the 
corporation's  electric  operations.  If  any  such  right  is  extmded  to  eoret  m. 
further  period  of  time  than  that  covered  by  the  original  grant,  the  coat  of 
such  extension  shall  be  classed  as  a  renewal.  A  patent-right  acquired  for  nae 
in  »n  existing  system  and  necessary  to  the  economical  operation  thereof  shall 
be  classed  as  an  addition. 

EI04.  Otheb  Ixtasgible  Eiectkic  Capital. 
Charge  to  this  account  the  e<»t  of  all  other  property  coming  within  the 
definition  of  intangible  capital  and  devoted  to  electric  operations.  All  entries 
of  charges  to  this  account  shall  describe  the  acquired  property  with  suflEkiait 
particularity  clearly  to  identify  it,  and  shall  also  show  specifically  tint 
principal  from  whom  acquired  and  all  agents  representing  such  principal  in 
the  transaction;  also  the  term  of  life  of  such  property,  estimated  if  not 
known,  and  if  estimated,  the  facts  upon  which  the  ^timate  is  based. 

E121.   GeXEKAL   STBrCTTBES. 

Charge  to  this  account  the  cost  of  all  buildings  and  other  structures  of  s 
permanent  character  devoted  to  general  corporate  purposes,  not  restricted 
to  electric  operations  and  not  includible  in  any  of  the  departmental  accounts; 
also  of  aU  fixtures  permanently  attached  tJiereto  and  made  a  part  thereof, 
such  as  water  pipes  and  fixtures,  steam  pipes  and  fixtures  for  warming  and 
ventilating,  gas  pipes  and  fixtures  for  lighting,  etc,  electric  wiring  and  fix- 
tures for  lighting,  signaling,  etc;  elevators,  etc,  and  the  engines  and  motors 
specially  provided  for  operating  them;  furnaces,  boilers,  etc,  spaciaHy  pro- 
vided for  producing  steam  for  such  engines  and  for  heating:  electric  gen- 
erators spedally  provided  for  producing  current  for  lighting  sac*!  buildings, 
etc.  This  account  includes  such  piers  and  other  foundations  for  machinery 
and  apparatus  as  are  designed  to  be  as  permanent  as  the  buildings  in  (or  in 
connection  with)  which  they  are  constructed,  and  to  outlast  the  first  ma- 
chinery or  apparatus  mounted  thereon. 

Note  A. —  Among  sacti  boildlnss  maj  be  mentioned  general  office  boOdlngs.  gen- 
eral shop  baildings,  general  storehouses,  general  stable  baildings,  etc  Where 
general  offices,  shops,  storehonses.  stables,  etc..  are  in  baildings  Incladible  in  a 
departmental  account,  as  c.  g.,  in  a  power  station  bailding,  no  part  of  the  cost  of 
sncb  bonding  shall  be  diarged  to  this  acconnt.  This  accoont  is  provided  for  stmc- 
tnres  of  a  general  or  miscellaneons  character  not  assignable  to  any  partJcnlar 
department. 

Note  B. —  When  fnmaces  and  boilers  are  nsed  primarily  for  famishing  steam 
for  some  particnlar  department  and  only  incidentally  for  famlditng  steam  for 
heating  a  general  boUdlng  and  operating  the  equipment  therein,  the  atire  cost  of 
such  fnmaces  and  boUers  shall  be  charged  to  the  appropriate  departmoital  capital 
account,  and  no  part  to  the  account  **  General  Structures ". 


12  PuuLio  Sekvick  Commission,  Second  District 

Note  C. —  The  cost  of  specially  provided  foundations,  not  expected  to  outlast 
the  machinery  or  apparatus  mounted  thereon,  should  be  charged  to  the  same 
account  as  is  the  cost  of  the  machinery  or  apparatus  for  which  they  are 
provided. 

E122.  General  Equipment. 

Cliurge  to  this  account  the  cost  of  all  equipment  "of  general  structures,  as 
provided  under  tiie  following  heads: 

a.  General  Office  Equipment:  This  includes  the  cost  of  all  equipment  of 
general  offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  drafting 
room  equipment,  and  other  like  olRce  appliances  and  equipment;  also  engi- 
neering instruments. 

b.  General  Shop  Equipment:  This  includes  the  cost  of  all  equipment 
specially  provided  for  general  shops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  electric  generators,  and  other  power  apparatus  used  in  operating 
machinery  in  such  shops;  machine  tools,  cranes,  hoists,  shafting,  belts,  and 
the  like  shop  equipment;  also  such  smithing  equipment  in  general  shops  as  is 
used  principally  for  other  general  pur})oses  than  shoeing  horses  and  repairing 
vehicles. 

NoTK. —  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall  not 
be  included  herein,  but  portable  tools  and  apparatus  of  special  value  may  be 
charged  to  this  account  and  remain  herein  so  long  as  record  is  kept  of  the  personn 
to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are  made  respon- 
sible therefor. 

c.  General  Store  Equipment:  This  includes  the  cost  of  all  equipment  of 
general  store  structures,  such  as  movable  counters,  movable  shelving  and 
other  movable  equipment  of  like  nature,  carts,  barrows,  trucks,  etc.,  and  other 
apparatus  and  appliances  used  in  handling  materials  and  supplies. 

Note. —  Counters,  shelving  and  the  like  which  are  permanently  attached  to  the 
structure  shall  be  charged  to  account  No.  E12I,  "General  Structures,"  and  not  to  this 
account. 

d.  General  Stable  Equipment:  This  includes  the  cost  of  all  equipment  of 
general  stables,  including  horses,  harness,  drays,  wagons,  automobiles  and 
other  vehicles,  equipment  of  shoeing  shops,  harness  repair  shops,  vehicle  re- 
pair shops,  etc. 

E131.  Dams,  Canals,  and  Pipe  Lines. 
Charge  to  this  account  the  cost  of  all  dams,  canals,  aqueducts,  and  pipe 
lines  devoted  to  the  utilization  of  water  power  and  the  delivery  of  the  water 
to  the  headgate  of  the  turbine  or  water-wheel;  also  that  of  all  wasteways 
from  the  outlet  of  the  draft-tube  to  the  point  of  final  discharge.  This  in- 
cludes all  gates,  valves,  and  other  accessories  of  such  dams ;  also  wasteways, 
sluices,  forebays,  grids,  walls,  fences,  etc.,  for  the  protection  of  such  canals 
and  pipe  lines,  and  all  trestles  and  other  supporting  structures;  also  all 
viaducts,  bridges,  foot-bridges,  etc.,  over  and  accessory  to  or  necessitated  by 
such  canals,  aqueducts,  and  pipe  lines. 

E132.  PowEB  Plant  Buildings. 
Charge  to  this  account  the  cost  of  material  used  and  labor  expended  in 
erecting  buildings  to  be  used  for  housing  power  generating  plants.  This  ac- 
count includes  cost  of  excavations,  permanent  foundations,  drainage,  gas  and 
water  pipes  and  connections,  grading  grounds,  and  furniture  and  fixtures 
when  permanently  attached  to  and  made  a  part  of  the  building;  also  th« 
cost  of  architects'  plans,  and  of  superintendence  of  construction. 


ACCOIIXTS   FOB   Ex-ECTKICAI.    CoRPOKATIOXS  13 

EI41a.  FCKXAGES,   BOILEBS,   A3SO  ACCSSSOKIES. 

Change  to  tikis  aeeomit  the  cost  of  all  furnaces,  boilers,  and  boiler  appaiatas 
and  aeoessories  devoted  to  the  produetion  of  steaai  for  nae  in  geaoating 
ekctrie  energv.  This  inehideB  boilers  and  Tahcs  thoeio  attached,  appwrtenaas 
fomaoes  and  grates,  and  floes  leadii^  to  aiiHAestada  and  ehimnefs,  aad  tha 
speeialH-  prorided  fonndatioas  and  setting  of  such  bmlers  and  appnrtaiaaees; 
also  iro«  sBofecstadka.  It  alao  inthides  nwehanieal  stokers  and  other  like 
apparatus  f<a  r^nlating  the  SD]^Iy  of  fuel,  tic^  feed  and  hot  water  heatera 
aad  eeammiRn,  injectors,  filters,  feed  pomps,  blower  rwgiars,  coal  coni^ors, 
ash  euBwyoiS,  water  pipes,  steam  traps,  drains,  and  separators,  and  pipes  for 
eondocting  steam  from  the  boiler  to  the  engine  or  to  the  gas  prodneera,  ex- 
hanst  pipes,  etc  It  does  not  include  steam  pipes  whose  primary  purpose  is 
the  heating  of  bniMingi. 

El41b.  SiKAM  EHOona. 

Charge  to  this  account  the  cost  of  all  steam  engimw  devofcd  to  the  prodne- 
tioB  of  eleetrie  oiergjr.  This  inrhidra  Oe  ^ecially  piorided  fonndations  aact 
aftliHgs  of  sodi  enginpsL  The  o^me,  whetho-  reciprocating  or  rotary  (autbc 
as  steam  turhines),  shall  be  eonaideicd  to  include  the  throttle  or  inlet  Tslre 
and  the  gofcmor;  also  eondenaers,  air  wad  eirenlating  pomps,  lohrieating 
system,  etc.,  hot  not  the  steam  pipe  l^-aHing  from  the  boiler,  nor  the  exhanst 
pipe.  Where  the  deetrie  rofan- is  Bioanted  on  the  en^ne  shafts  the  shaft  shall 
be  eoBridered  a  part  of  the  steam  o^ne  and  the  deetric  rotor  thereon  shall 
be  OMishlneJ  a  part  of  the  deetric  equipmnit. 

£142.  TUBBUtm  ABED  WaXBB-WBBSUw 

Charge  to  this  aceoont  the  cost  of  all  tarbtnes  and  water-wheds  deroted  to 
the  conrersion  of  water  power  into  in>^li«iiii>«l  power  for  the  prodactwa  of 
deetric  energy.  This  includes  the  spedal^  {Rotided  foundati«ms  and  wrttiags 
of  soch  enginiBt,  also  their  goremors  and  all  other  apputeaant  apparatos 
attached  thereto  from  and  indnsiTe  of  the  head^tes  and  guiwuis  to  (bat 
esdnsne  at)  the  wastewi^.  Where  the  deetrk  rotor  is  momted  on  (not 
mereljr  eoopled  to)  the  shaft  of  the  hydraolie  engine,  the  shaft  shall  be  con- 
sidered  a  part  of  the  hjdraolic  engine  and  the  deetric  rotor  thereon  shall  be 
considered  a  part  of  the  eleetrie  equipment. 

E143a.  Gas  PaoDucsas  asd  AccMsaamaa. 

Charge  to  this  account  the  cost  of  prodncers  and  a««BMOiies  devoted  to  the 
prodnetion  of  gas  for  the  purpose  of  operatii^  eleetrie  generators,  iadnding 
the  cost  of  specially  prorided  foundations  and  aetiiugs  for  sodh  prodneeia 
and  accessories.  This  account  includes  producers,  eetmomiaers,  legeueiatorsy 
Taporiaers,  steam  injecton,  scrubbers,  exhauster  outfits,  seals,  specially  pro- 
rided boflers  and  pumps,  flues  and  piping  blower  engines,  pipes  for  the  eon- 
dnetitm  of  gas  from  soeh  producers  to  holders  and  to  gas  engines,  holders 
for  producer  gas,  exhaust  {npes  from  gas  engines,  etc.  It  does  not  induds 
pipes  whose  primary  purpose  is  the  warming  of  buildings;  nor  does  it  iit< 
dude  power  transmission  apparatus,  or  water  pipes,  steam  pipes,  water  pomps, 
or  inspirators. 

S143b.  Gas  EsGma. 

Charge  fo  this  aceount  the  cost  of  all  gas  engines  devoted  to  the  produc- 
tion of  electric  energy,  including  the  specially  prorided  foundatXHls  and  set- 
tings of  such  engines.  The  engine  includes  the  inlet  Talve,  gofvemor,  aad 
ignition  aad  startiBg  aqipaxalns,  but  not  the  pipe  leading  firom  the  gts  hoUm; 


14         Public  Service  Commission,  Second  Distkict 

nor  the  exhaust  pipe.     Wliere  tlie  electric  rotor  is  mounted  on  the  engine 
shaft,  the  shaft  shall  be  considered  a  part  of  the  engine  and  the  electric  rotor 
thereon  shall  be  considered  a  part  of  the  electric  equipment. 
E144a,  Electric  Genebators. 

Charge  to  this  account  the  cost  of  all  electric  generating  apparatus  driven 
by  engines  operated  by  steam,  water,  or  gas;  and  rotaries  and  motor  generat- 
ing sets,  exciters,  etc.,  wlien  not  installed  in  connection  with  transmission  sys- 
tems. This  includes  tlie  specially  provided  foundations  and  settings  of  such 
apparatus.  Where  the  electric  rotor  of  such  apparatus  is  mounted  on  the 
shaft  of  the  steam,  hydraulic,  or  gas  engine,  the  rotor  is  to  be  included 
herein,  but  not  the  shaft.  Belts,  countershafts,  and  other  like  intermediaries 
between  sucli  engines  and  the  generators  are  also  to  be  excluded  herefrom. 

Note. —  Regarding  transmission  and  distribution,  see  the  note  to  account  No. 
fil63,  "Transmission   System".      (See  page  15.) 

E144b.  AccEssoBY-  Electbic  Poweb  Equipment. 

Charge  to  this  account  the  cost  of  all  electric  equipment  of  generating 
stations  not  includible  in  the  last  foregoing  account.  This  account  includes 
bus-bars,  regulators,  station  switchboards  and  equipment,  such  as  circuit- 
breakers,  switches,  ammeters,  voltmeters,  wattmeters,  and  the  like,  and  their 
foundations  and  settings;  also  headgate  motors,  pump  motors,  air  com- 
pressor motors,  etc.,  and  special  high-tension  transmission  equipment  at 
power  stations,  such  as  high-tension  bus-bars,  high-tension  switchboards, 
high-tension  switches,  high-tension  current  transformers,  high-tension  light- 
fiing  arresters,  high-tension  potential  transformers,  high-tension  reactive  coils, 
high-tension  choke  coils,  high-tension  grounding  devices  and  resistances,  high- 
tension  raising  and  lowering  transformers,  etc. 

E145.  Miscellaneous  Poweb  Plant  Equipment. 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  at  power 
plants  which  is  not  includible  in  any  of  the  foregoing  accounts.  This  includes 
such  mechanical  apparatus  as  belts,  pulleys,  hangers,  countershafts,  and  other 
apparatus  intermediary  between  the  prime  mover  and  the  electric  generator, 
cranes,  hoist?,  etc.,  and  machine  tools  and  such  other  tools  at  power  plants 
as  are  proper  to  be  capitalized,  etc. 

^OTD. —  This  account  should  not  include  any  sub-station  equipment. 
E151.  Sub-station  Buildings. 

■Charge  to  this  account  the  cost  of  material  used  and  labor  expended  in 
erecting  buildings  to  be  used  for  power  sub-station  purposes,  including  ex- 
cavations, permanent  foundations,  drainage,  gas  and  water  pipes  and  connec- 
tions, grading  grounds,  and  furniture  and  fixtures  when  permanently  attached 
to  and  made  a  part  of  the  building;  also  the  cost  of  architects'  plans,  and  of 
superintendence  of  construction. 

NOTB. —  No  charge  should  be  made  to  this  account  In  respect  of  a  power  plant 
J)uilding,  even   though  such  building  also  contains  sub-station  apparatus. 
E152.  Sub-station  Equipment. 

^Charge  to  this  account  the  cost  of  all  equipment  of  sub-stations.  Such 
equipment  includes  not  only  electric  machinery  and  apparatus,  including 
atorage  batteries,  in  sub-stiilions,  but  also  all  other  furniture  and  equipment, 
auch  as  furnaces,  boilers,  stoves,  elevators,  etc.,  permanently  assigned  to  such 
stations  bnt  not  aflRxed  to  the  structures  thereof.  It  does  not  include  labora- 
tory instruments  and  apparatus  not  permanently  assigned  tlisreto,  nor  does 
it  include  tools  only  temporarily  assigned  to  such  stations. 


Accounts  fob  Electkical  Cokporatioxs      15 

E161.  Poles  aitd  Fixtubes. 
Charge  to  this  account  the  cost  of  towers,  structures,  poles,  cross-arms,  and 
insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  guvs  and  other  sup- 
ports for  holding  the  towers,  structures,  and  poles  in  position;  and  all  labor 
expended  in  connection  with  the  construction  of  pole  lines  or  structures  for 
carrying  the  transmission  and  distribution  systems. 

£162.    UXDESCGSOUXD  COSDUITS. 

Charge  to  this  account  the  cost  of  conduits  required  for  underground  wires 
and  cables,  including  manholes,  ducts  and  pipes,  sewer  connections,  sewer 
traps,  and  all  material  necessary  for  the  completion  of  the  underground  con- 
duit system  devoted  to  the  protection  of  tlie  transmission  and  distribution 

systems. 

El 63.  Traxsmissios  System. 

Charge  to  this  account  the  cost  of  the  transmission  system,  including  cables, 
wires,  insulators,  and  insulating  material. 

KoTE. —  When  the  electric  current  generated  (or  received  from  another  corpo- 
ration) is  condacted,  either  at  the  voltage  of  generation  (or  receipt)  or  at  a 
higher  voltage,  to  a  point  where  it  is  (a)  lowered  in  voltage  by  means  of  step- 
down  transformers,  or  changed  as  to  kind  or  frequency  by  means  of  (b)  motor 
generator  sets,  ^c)  rotary  converters,  or  (d)  frequency  changers,  that  portion  of 
the  outside  line  or  conductor  system  antecedent  to  the  said  stepdown  transformers, 
motor  generator  sets,  rotary  converters,  or  frequency  changers,  shall  be  classed  as 
the  Transmission  Sjrstem ;  except,  however,  that  primary  wiring  in  lighting  systems 
at  not  to  exceed  4,400  volts,  4-wire,  3-pbase,  shall  be  classed  as  a  part  of  th« 
Distribution  System.  Tie-lines  between  generating  stations  and  sub-stations  shall 
follow  the  same  rule.  Line  transformers  are  not  included  among  the  '*  stepdown 
transformers  "  above  mentioned. 

El 64.  DiSTRiBLTiox  System. 

Charge  to  this  account  the  cost  of  all  distribution  main  conductors  and 
feeders,  including  the  cost  (in  place)  of  all  cables,  wires,  insulators,  and 
insulating  material. 

This  account  shall  be  subdivided  so  as  to  show  separately  the  following: 

a.  Overhead  Distribution  System; 

b.  Edison  Tube  System,  including  the  cost  in  place  of  all  the  Edison  tube 
system  material,  such  as  junction  boxes,  tubing  material  and  conductors, 
coupling  boxes,  etc.;  • 

c.  Other  Utiderground  Distribution  System. 

KoTB  A. —  The  amounts  charged  to  the  subdivisions  above  stated  will  be  reqolred 
to  be  separately  reported  in  the  annual  reports  of  the  corporation  to  the  Public 
Service  Commission. 

Note  B. —  For  the  distinction  between  the  transmission  system  and  the  distribu- 
tion system,  see  the  note  to  account  No.  E163,  "  Transmission  System  **. 
EI60.  Line  T&ansfobmers  asd  DmcES. 

CHuirge  to  this  account  the  cost  of  all  line  transformers  (both  overhead  and 
underground),  pole  line  lightning  arresters,  transformer  cut-out  boxes,  line 
cut-out  switches,  etc.,  in  the  distribution  system. 

f  Note. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
aeconntlng  corporation  may  also  include  in  this  account  the  cost  of  line  trans- 
formers and  devices  temporarily  withdrawn   from   service. 

El 66.  Electric  Services. 

Charge  to  this  account  the  cost  of  all  conductors  (and  appurtenant  in- 
sulation, ducts,  and  supports)  connecting  the  distribution  mains  with  electric 
apparatus  and  appliances  in  the  possession  of  consumers. 

Note. —  Cost  of  renewing  or  modifying  serrices  shall  not  be  charged  to  this 
account. 


16  Public  Service  Commission,  Second  District 

E167a.  Electric  Meters. 

Charge  to  this  account  the  cost  of  meters  used  in  determining  the  amount 
of  electric  energy  delivered  to  the  several  consumers  to  whom  it  is  supplied. 

Note  A. —  Cost  of  setting,  removing,  or  re-setting  such  meters  sliall  not  be  charged 
to   this  account. 

Note  B. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  may  also  Include  in  this  account  the  cost  of  consumers' 
meters  temporarily  withdrawn  from  service. 

El67b.  Electbic  Meter  Installation. 

Charge  to  this  account  the  cost  of  the  first  setting  of  meters  for  determining 
the  amount  of  electric  energy  delivered  upon  the  premises  of  consumers,  in 
case  it  is  the  policy  of  the  corporation  to  capitalize  the  cost  of  such  setting. 

Note  A. —  Cost  of  removing  such  meters  and  of  setting  other  meters  substituted 
for  them  shall  not  be  charged  to  this  account  but  to  account  No.  E533,  "  Setting  and 
Removing  Meters  and  Transformers".      (See  page  41). 

Note  B. —  This  account  must  not  include  at  any  time  the  cost  of  installation  of 
a  greater  number  of  consumers'  meters  than  are  actually  in  service. 

E171.  Municipal  Street  Lighting  System    (Electric). 

Charge  to  this  account  the  cost  (in  place)  of  all  property  of  the  company 
in  poles,  cross-arms,  pins,  braces,  insulators,  etc.,  arc  circuits,  lamps,  and  out- 
fits and  suspensions,  specially  provided  for  the  municipal  street  lighting 
system.  Such  cost  includes  cost  of  material,  transportation,  setting  poles, 
etc.,  and  restoring  the  surface  of  the  street  to  the  condition  required  by  the 
municipality.  This  account  does  not  include  any  part  of  the  general  dis- 
tribution system,  but  only  things  in  the  utilization  plant  beyond  the  service 
and  devoted  to  the  municipal  service. 

Note  A. —  Where  the  municipality  requires  for  its  special  benefit  the  extension  of 
mains  and  services  for  street  lighting,  such  extensions  may,  so  long  as  used  solely 
for  street  lighting,  be  charged  to  this  account,  provided  a  full  description  of  the 
extensions  so  charged  and  the  amounts  charged  in  respect  thereof  be  filed  with 
the  Public  Service  Commission  on  or  before  the  date  when  the  entry  thereof  is 
made  upon  the  books  of  the  corporation. 

Note  B. —  If  the  corporation  uses  in  its  street  lighting  system  the  same  type 
of  arc  lamps  that  it  uses  in  its  commercial  lighting  system,  and  uses  them  inter- 
changeably,  it  will  be  permitted,  upon  filing  with  the  Public  Service  Commission 
a  notice  thereof,  to  charge  the  cost  of  all  arc  lamps  in  its  street  lighting  system 
to  account  No.  E172,  "  Commercial  Arc  Lamps ". 

El 72.  Commercial  Arc  Lamps. 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in  commer- 
cial arc  lamps  supplied  to  consumers  (including  municip-il  buildings)  where 
such  lamps  have  an  expectancy  of  life  in  service  of  more  than  one  year. 

Note  A. —  Meters  supplied  to  consumers  are  provided  for  In  a  foregoing  account 
and  should  not  be  included  herein. 

Note  B. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  may  also  include  in  this  account  the  cost  of  arc  lamp* 
temporarilj/  withdrawn  from  service. 

E173.  Glower  Lamps. 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in  electric 
glower  lamps  supplied  to  consumers  (including  municipal  buildings)  where 
such  lamps  have  an  expectancy  of  life  in  service  of  more  than  one  year. 

Note  A. —  Meters  supplied  to  consumer^  are  provided  for  in  a  foregoing  account 
and  should  not  be  included  herein. 

Note  B. —  This  account  is  restricted  to  long-life  Incandescent,  or  glower  lamp» 
such  as  the  Nernst,  and  does  not  Include  the  ordinary  carbon  filament  incandescent 
lamps.     Short-life  incandescent  lamps   (I.  e.,  those  having  an  expectancy  of  llfs  of 


Accounts  foe  Eukctricai.  Cokporatioxs  IT 

fK^tt  one  jcar)  Aall  be  cbarged  to  tte  awroiRiate  operattns  expeaa*- 
■ecoat  when  Iwied  fur  oae.  aad  piUa  to  tliat  tlae  tlMj  AmU  be  carried  la  tt* 
apprapciate  "Materials  and  SnppUea*  aeeoont. 

Nan  a— Upon  ffling  witii  the  PoUic  Serriee  CtaniMHatnn  a  notke  thereof,  tbe 
aeeoontiBg  oocporatiaB  may  also  indnde  in  this  aeeoont  the  cost  of  lone-Uf e  tn- 
caadeseent  laaps  feiyorsnly  vit&drawn  tnm  werriot. 

E174.  Electkic  Motoks  JlXd  HIeaikbs. 

Chai^  to  this  account  the  cost  of  all  propertr  of  the  eompanv  in  electrie 
motors  and  heatos  kaaed  to  emsmnezs  (inchiding  mmtieipalities),  and  of  a1^ 
appnrtenanees  thereof,  soeh  as  fans,  etc 

Xoxs. —  Upon  fillne  with  the  Poblie  Service  Cawiiaaion  a  notice  tlwreoC,  the  ae- 
eoanttans  covpontion  suit  also  Indnde  In  this  aeeoant  flie  cost  of  deetrie  omMots- 
aad  benters  temporanlg  withdrawn  Cron  anrlee. 

£175.  Elsctsic  Tools  axd  Jmflbmssts. 

Charge  to  tiiis  aeeoant  the  cost  of  all  tools  and  implements  emiing  withi» 
tiie  scope  of  the  definition    (see  note,  page  5|    of  electric  fixed  capital  and. 
■ot  eorered  hy  any  of  the  foregoing  eqoipment  aceoimta. 
El 76.  Electric  Labobaiokt  Equtpmest. 

Chsrge  to  this  account  the  cost  of  all  testing  apparstos  and  laboratoix 
eqpd^icat  not  elsewhere  provided  for. 

IknsL^TUa  aeeoant  indndes  aU  electric  tcsUns  appantos  and  cqoipaMnt  tn 
labscataries.  It  does  not  Indnde  sndi  instrvncats  as  are  pennancntly  aa^ened  to 
CCBontins  statioBs.  snl^statlons.  and  tiie  flke;  snch  as  station  anuBeteis.  vrtt- 
■wtos,  and  wattmeters,  etc. 

E177.  Othxb  Tajsgiblb  Electkic  Capttai^ 

€3iazge  to  this  aeeoant  ibe  cost  of  all' tangible  eketrie  enpltal  sot  elaewhere- 
psorided  for. 

;^81.  EXGEXCCnKO  AXD  SCFCRIXTEMWIXCE. 

Charge  to  this  aeeoant  all  expenditares  for  serriees  of  engineers,  drafts- 
men, and  soperintendents  employed  <m  preliminary  and  cunsUuctian  work, 
and  all  expoises  incident  to  the  work,  when  soeh  disbursements  cam  not  be- 
assigned  to  q>eeific  constroetion. 

Non. —  When  employees  enomerated  abore  are  engaged  m  worit  not  cliarseabl» 
to  eonstmefian.  tlidr  pay  and  expenses  shall  be  diarsed  to  tbe  spedllc  woefc  on 


£282.  Law  ExpESDrrcBES  Dcbtvg  CoysmucTiox. 

Charge  to  this  account  general  expenditares  of  the  following  nature,  in- 
enrred  in  eonneetion  with  the  etmstructifm  of  an  electric  plant,  namely:  the 
pay  and  expenses  of  all  eoansel,  solicitors,  and  attorneys,  their  eletka  and 
attendants:,  and  expoises  of  thar  offices;  printing  briefs,  I^al  forms,  testi- 
mony, reports,  ete.;  payments  to  arbitrators  for  the  settlement  of  dispated 
^pestimis ;  eosts  of  suit  and  payments  of  special  fees,  notarial  fe^^,  and  witneaa 
fees;  and  expenses  connected  with  taking  depositions;  also  aU  I^al  and  court 
exp^Kses^ 

When  any  of  the  expenditures  above  enumerated  can  be  chaiged  directly  to^ 
the  aeeoant  for  which  incurred,  they  shall  be  so  charged  and  not  to  this  ae- 
eotmt.  Expenditures  in  connection  with  the  acquisition  of  the  right  of  way 
or  other  land  ahall  be  charged  to  accotrat  No.  El  10,  "Innd  Devoted  t<y 
JSleetric  OperatkmB  **.  Law  expenditures  in  connection  with  the  organization 
of  the  corporation  shall  be  charged  to  account  No.  101,  **  Organization  **. 

E283.  IxjrrKizs  Dustno  Coxstscctiox. 
Charge  to  this  account  all  expenditares  incident  to  injuries  to  perscms  when 
caused  directly  in  connection  with  construction  of  electric  plant  and  equip- 


18  Public  Sebvice  Commission,  Second  District 

ment ;  proportion  of  salaries  and  expenses  of  physicians  and  surgeons ;  nursing 
and  hospital  attendance,  medical  and  surgical  supplies,  artificial  limbs,  rail- 
road and  carriage  fares  for  conveying  injured  persons  and  attendants;  funeral 
expenses  (including  payments  to  undertakers)  ;  proportion  of  pay  and  ex- 
penses of  claim  adjusters  and  their  clerks,  and  pay  and  expenses  of  employees 
and  others  called  in  consultation  in  relation  to  the  adjustment  of  claims 
coming  under  this  head;  also  witness  fees  and  amount  of  final  judgments. 

E284.  Taxes  During  Construction. 
Charge  to  this  account  all  taxes  and  assessments  levied  and  paid  on  prop- 
erty belonging  to  the  corporation  vehile  under  construction  and  before  the 
plant  is  opened  for  commercial  operation,  except  special  taxes  assessed  for 
street  and  other  improvements,  such  as  grading,  sewering,  curbing,  guttering, 
paving,  sidewalks,  etc.,  which  shall  be  charged  to  the  account  to  which  the 
property  benefited  is  charged. 

E285.  Miscellaneous  Construction  Expenditures. 

Charge  to  this  account  the  salaries  and  expenses  of  executive  and  general 
officers  of  an  electric  plant  under  construction;  clerks  in  general  offices  en- 
gaged on  construction  accounts  or  work;  rent  and  repair  of  general  offices 
when  rented,  with  the  office  expenses;  insurance  during  construction;  also  all 
construction  and  equipment  items  of  a  special  and  incidental  nature  which 
can  not  properly  be  charged  to  any  other  account  in  this  classification. 

Note  A. —  This  account  may  include  a  suitable  proportion  of  store  expenses  when 
such  expenses  are  not  assignable  to  specific  materials. 

Note  B. —  This  account  shall  not  Include  any  costs  of  organization,  or  any  costs 
or  discounts  connected  with  the  issue  and  disposal  of  stocks,  funded  debt,  or  other 
securities,  and  commercial  paper. 

E286.  Interest  During  Construction. 

Charge  to  this  account  the  interest  accrued  upon  all  moneys  (and  credits 
available  upon  demand)  acquired  for  use  in  connection  with  the  construction 
and  equipment  of  the  property  from  the  time  of  such  acquisition  until  the 
construction  is  ready  for  use.  Interest  receivable  accrued  upon  such  mone3rft 
and  credits  shall  be  credited  to  this  account.  To  this  account  shall  also  be 
credited  discounts  realized  through  prompt  payment  of  bills  for  materials 
and  supplies  used  in  construction  unless  such  discounts  are  credited  to  the 
particular  bills. 

Olio.  Land  in  Other  Departments. 

Charge  to  this  account  the  cost  of  the  corporation's  interests  in  land 
(exclusive  of  improvements  thereon)  devoted  to  operations  other  than  electric 
operations,  gas  operations,  railroad  operations,  and  street  railroad  operations.' 
Such  cost  includes,  when  assumed  or  when  paid  by  the  purchaser  in  its  own 
hehalf,  cost  of  registration  of  title,  cost  of  examination  of  title,  conveyancer's 
and  notary's  fees,  purchasing  agent's  commissions  or  fees,  or  proportion  of 
purchasing  agent's  salary,  taxes  accrued  to  date  of  transfer  of  title,  and  all 
liens  upon  the  title  acquired.     If  at  the  time  of  acquisition  of  such  interest 


•Note. —  Gas  Capital,  Railkoad  Capital,  and  Street  Railhoad  Capital. —  For 
the  accounts  to  which  shall  be  charged  the  cost  of  capital  devoted  to  gas  operations, 
see  the  Uniform  System  of  Accounts  for  Gas  Corporations;  for  steam  railroad 
operations,  see  the  Uniform  System  of  Accounts  for  Kxpenditures  for  Road  and 
Equipment,  etc.,  as  established  for  Steam  Railroad  Corporations  by  the  Public 
Service  Commission ;  and  for  electric  railroad  and  street  railroad  operations,  see 
the   Uniform    System   of   Accounts   for   Street   Railroad   Corporations. 


AccouxTS  FOB  Electbical  Cobporatioss      19 

in  lands  it  extends  to  buildings  or  other  improvements  thereon,  which  im- 
provements are  devoted  by  the  corporation  to  operations  other  than  the  four 
classes  above  mentioned,  and  the  contract  of  acquisition  does  not  determine 
the  price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash 
value,  and  such  appraised  value  shall  be  charged  to  the  appropriate  acconnis 
and  excluded  from  the  account  "  Land  in  Other  Departments ".  If  such  im- 
provements aro  held  as  investments,  the  cost  (or  appraised  value  at  time  of 
acquisition  of  title  if  the  cost  to  the  corporation  is  not  determined  in  the 
contract  of  acquisition)  shall  be  charged  to  the  appropriate  investment  ac- 
count. If  tlie  improvements  are  removed  or  wrecked,  the  salvage  (less  the 
ccst  of  removal  or  wreckage)  shall  be  excluded  from  the  account  "  Land  in 
Other  Departments  ". 

0102.  Franchises  is  Otheb  Ditartmexts. 
Charge  to  this  account  "the  amount  (exclusive  of  any  tax  or  annual 
charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof  as 
the  consideration  for  the  grant  of  such  franchise  or  right "  as  is  necessary 
to  the  conduct  of  the  corporation's  operations  other  than  electric,  gas,  rail- 
road, and  street  railroad. 

O103.  Patext-rights  ix  Other  Departments. 

Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  when  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  which  are  necessary  to  the  economical  conduct  of 
the  corporation's  operations  other  than  electric,  gas,  railroad,  and  street  rail- 
road. 

O104.  Other  Intangible  Capital  i:n  Other  Departments. 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coming 
within  the  definition  of  intangible  capital  devoted  to  its  operations  other 
than  electric,  gas,  railroad,  and  straet  railroad,  and  not  includible  under 
any  of  the  foregoing  accounts. 

O120.  Tangible  Capitaii  in    Other  Departments^ 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coining 
within  the  definition  of  tangible  capital  devoted  to  its  operations  other  than 
electric,  gas,  railroad,  and  street  railroad. 

25.  Floating  Capital  divided  into  two  groaps. —  Floating  capital  is  divided 
into  two  great  groups,  of  which  the  first  is  herein  called  "Materials  and  Sup- 
plies," and  the  second,  "  Current  Assets  ". 

26.  Definitions  of  Floating  Capital  accounts. —  In  the  following  definitions 
the  letters  and  figures  prefixed  to  the  titles  of  the  accounts  are  no  part  of 
the  titles  and  are  inserted  merely  for  convenience  of  reference: 

ElO.  M.\te8Ials  and  Sctpues. 
Charge  to  this  account  the  cost  (including  transportation)  of  all  materials 
and  supplies  acquired  by  the  corporation,  regardless  of  whether  the  same 
are  intended  to  be  consumed  in  construction  or  in  operation,  or  later  to  be 
sold.  Where  discounts  recovered  througli  prompt  pa^i-ment  are  not  credited 
to  the  particular  bills,  the  cost  at  which  such  materials  and  supplies  shall 
be  charged  shall  be  the  invoice  cost,  and  any  discounts  recovered  through 
prompt  payment  of  bills  for  such  materials  and  supplies  shall  be  credited  to 


20  Public  Service  Commission,  Second  District 

account  No.  E286,  "  Interest  During  Construction,"  or  to  account  No.  E852, 
"Undistributed  Adjustments  —  Balance,"  according  as  such  materials  an<f 
supplies  are  intended  for  construction  or  for  operation. 

The  scrap  value  of  things  retired  from  service  shall  be  charged  to  an  appro- 
priate sub-account  in  this  account  while  such  things  remain  the  property  of 
the  corporation.  If  such  scrap  value  is  not  known  and  can  not  readily  be 
determined  it  shall  be  estimated,  and  errors  in  such  estimates  when  deter- 
mined shall  be  adjusted  through  the  accounts  involved  if  during  the  year  in 
which  the  estimates  were  made ;  if  later,  then  through  the  "  Corporate  Surplus 
or  Deficit "  account. 

Inventories  of  materials  and  supplies  shall  be  taken  at  least  annually,  and 
any  shortages  or  overages  disclosed  by  such  inventories  shall  be  credited  or 
debited  to  this  account  and  debited  or  credited  to  the  operating  expense  ac- 
count No.  E852,  "Undistributed  Adjustments  —  Balance,"  in  case  they  can 
not  be  assigned  to  specific  accounts.  Shortages  may,  however,  be  charged 
directly  to  "  Corporate  Surplus  or  Deficit ".  Where  such  materials  and  sup- 
plies have  been  used  in  construction,  a  suitable  proportion  of  such  shortages- 
or  overages  may  be  debited  or  credited  to  account  No.  E285,  "  Miscellaneous- 
Construction  Expenditures  ". 

Note. —  It  is  not  required  that  the  transportation  element  of  cost  shall  be 
assigned  with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
material  or  supply.  Where  a  single  transportation  item  covers  a  multitude  of 
things  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  are  •charged  to. 

1.  Cash. 
Charge  to  this  account  all  money  coming  into  the  possession  of  the  corpora- 
tion and  in  which  the  corporation  has  the  beneficial  interest.  This  includes 
coin  of  the  United  States,  United  States  treasury  notes,  gold  and  silver  cer- 
tificates and  greenbacks,  and  bank  bills  payable  to  bearer.  Also  charge  to  Ifc 
all  bank  credits,  checks  and  drafts  receivable,  subject  to  satisfaction  or 
transfer  upon  demand  (whether  payable  to  bearer  or  to  order).  Credit  this- 
account  with  all  cash  disbursements  of  the  corporation. 

2.  Bills  Eeceivabij!;. 

Charge  to  this  account  the  cost  of  all  bills  receivable  (except  as  below 
provided)  which  are  the  property  of  the  corporation  and  upon  which  solvent 
concerns  are  liable  or  which  are  sufficiently  secured  to  be  considered  good^ 
This  account  includes  demand  notes,  drafts,  etc.,  issued  by  others  than  banks,, 
and  time  notes,  drafts,  etc.,  by  whomever  issued.  Thia  account  does  not  in- 
clude investments  (for  which  see  page  21);  nor  does  it  include  interest 
coupons. 

3.  Accounts  Receivable. 

Charge  to  this  account  all  amounts  owing  to  the  corporation  upon  ac- 
counts with  solvent  concerns  (other  than  banks)  ;  also  the  cost  of  all  accounts 
and  claims  upon  which  responsibility  is  acknowledged  by  solvent  concerns  or 
which  are  suinciently  secured  to  be  considered  good,  and  of  all  judgments 
against  solvent  concerns  where  the  judgment  is  not  appealable  or  suspended 
through  appeal.     This  account  does  not  include  negotiables. 

4.  Interest  and  Dividends  Receivable. 
Whenever  the  income  account  is  stated  the  appropriate  sub-account  therein 
shall   be   credited,   and   this   account   shall   lie   charged   with   all   accrued    but 


AccoLXTS  FOR  Electkical  Corporatioxs      21 

«ot  yet  collected  iaterest  upon  all  ccmmercial  paper  and  accounts  eooaidered 
collectible  held  br  or  for  tiie  benefit  of  the  corporation;  also  all  dividenda 
declared  or  guaranteed  hj  solrent  concerns  but  not  vet  collected,  the  right  to 
vhieh  is  in  the  corporation. 

5.  Otheb  CtrKKEXT  Assets. 

Charge  to  this  account  the  cost  of  all  current  assets  of  the  corporation  whicfi 
4tre  not  includible  under  any  of  the  last  four  foregoing  accounts.  By  current 
assets  are  meant  only  those  things  which  are  readily  convertible  into  money 
and  which  are  held  with  the  intent  of  being  presmtly  conrerted  into  money 
.and  not  as  inrestmenta. 

27.  Investments  defined. —  By  Intestments,  as  here  used,  are  meant  all  prop- 
■erties  acquired  not  for  use  in  present  operations,  but  as  a  means  of  obtaining 
or  exercising  control  over  other  corporations,  or  for  income  to  be  derived 
from  them,  or  for  a  rise  in  value,  or  for  devotion  to  future  operations  at  a 
time  when  it  seems  probable  that  they  can  not  be  so  advantageously  acquired 
»B  at  the  time  of  actual  acquisition.  By  bound  investments  are  meant  those 
iield  subject  to  a  lien  of  some  character;  by  free  investments  am  meant  tlioae 
held  free  of  all  liens. 

300.  IXVESTME^rS. 

The  cost  of  the  corporation's  title  to  any  property  held  as  an  inveslanoit 
shall  be  charged  to  an  account  entitled  **  Investments ". 

XoTK. —  In  the  annoal  rqmrts  to  be  made  to  the  Public  Service  Commission  fay 
the  corporations  and  other  persons  engaged  in  electric  <HieratIons.  inT<>stments, 
whether  boond  or  free,  will  be  required  to  be  claasilled  with  at  least  the  followtmr 
-detail : 

Boond  investments  will  be  reqoired  to  be  divided  into  the  three  classes :  "  Ifort- 
gased  or  Pledged  Investments.**  **  Contractual  Pond  Investments,"  and  **  Other 
Boond  Investments ".  Each  of  these  three  classes,  and  the  class  "  Free  Invest- 
ments,** will  be  reqoired  to  be  sobdlvided  into  the  following :  Funded  Debt  of  Con- 
trolling Corporations.  Ponded  Debt  of  Affiliated  Corporatioas.  Ponded  Debt  of  Oni- 
trolled  Corporations,  Sto^s  of  Controlling  C<HrpoiatIaBS,  Stocks  of  Affiliated  Cor- 
porations. Stods  of  Controlled  Corporations,  Advances  to  Controlled  Corporation^ 
Funded  Debt  of  Other  Corporations.  SEtocks  of  Other  Coriiorations,  Land,  Improve- 
ments on  Land,  and  Other  Investmeits. 

38.  Special  Deposits  defined. —  By  Special  Deposit*,  as  here  used,  are  meant 
amounts  of  money  and  bank  credits  in  the  hands  of  fiscal  and  other  agents  of 
the  corporation  for  the  payment  of  coupons,  dividends,  or  o£her  special 
purposes.  Credits  at  banks  subject  to  check  of  the  corporation  or  its  agents 
for  general  purposes,  deposits  at  banks  whether  withdrawable  at  pleasure 
or  after  a  specified  time,  amounts  of  money  in  safety  deposit  vaults,  etc.,  so 
long  as  tliey  are  available  for  general  purposes  of  the  corporaticHi,  shall  be 
excluded  herefrom. 

311-  Cocpox  Speciai.  Iteposrrs. 

Charge  to  this  account  all  moneys  and  bank  credits  specially  deposted  in 
ihe  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  interest  coupons  when  presented.  Such  coupons  when  paid  from  sudi 
deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
matured  interest  account.  Payments  to  trustees  (or  other  agents)  of  the 
holders  of  bonds  or  other  seeofities  of  the  interest  accrued  thereon  which  op- 
erate under  the  terms  of  the  securities  (or  of  mortgages  supporting  such 
securities)  as  a  rekaae  of  the  paying  corporation  from  further  liability  for 
such  interest  shall  not  be  charged  to  this  account,  but  to  the  appropriate 
"Interest  Accrued"  account. 


22  Public  Service  Commission,  Second  District 

312.  Dividend  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  specially  deposited  in 
the  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  dividends  upon  the  corporation's  stocks.  Such  dividends  when  paid  from 
such  deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
dividend  account. 

313.  Other  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  deposited  in  the  hands 
of  fiscal  agents  or  other  agents  of  the  corporation  for  other  special  purposes 
than  the  payment  of  interest  coupons  and  dividends.  Charges  to  this  account 
shall  specify  the  purpose  for  which  the  deposit  is  made.  When  such  purposes 
are  satisfied  this  account  shall  be  credited  with  the  amount  specially  deposited 
to  provide  such  satisfaction. 

29.  Prepayments. —  When  payments  for  taxes,  insurance,  rents,  and  the  like 
are  made  in  advance  of  the  actual  accrual  thereof,  the  amount  of  the  advance 
pajment  shall  be  charged  to  tlie  appropriate  account  in  this  group.  As  such 
taxes,  etc.,  accrue,  the  appropriate  prepayment  account  shall  be  credited  and 
the  appropriate  expense  or  other  income  account  shall  be  charged. 

Note. —  By  the  accrual  of  taxes,  insurance,  rents,  etc.,  is  meant  their  accumula- 
tion when  considered  as  spread  uniformly  over  the  period  to  which  they  apply- 
Thus,  if  the  rent  fixed  by  contract  of  lease  for  a  certain  property  is  ?600  for  a 
calendar  year,  this  accrues  at  the  rate  of  $50  each  month  (unless  it  is  desired  to 
base  the  accrual  on  days,  when  of  course  the  varying  lengths  of  the  months  would 
require  to  be  considered),  regardless  of  the  actual  times  when  the  rent  matures; 
$50  should  thus  (if  the  rent  has  been  prepaid)  be  credited  each  month  to  the 
account  "  Trepaid  Rents,"  and  concurrently  charged  to  the  appropriate  account 
in  the  "  Income  "  account.     Similarly  in  the  case  of  other  prepayments. 

321.  Prepaid  Taxes. 

When  taxes  are  paid  in  advance  of  their  accrual,  the  amount  prepaid  shall 
be  charged  to  this  account.  As  the  taxes  thus  prepaid  accrue,  they  shall  be 
credited  at  monthly  intervals  to  this  account  and  charged  to  the  appropriate 
taxes  account.  This  account  must  not  include  any  so  called  taxes,  like  water 
taxes,  drainage  taxes,  fire  taxes,  etc.,  which  are  payments  for  special  benefits 
received.  Such  payments  for  special  benefits,  where  finally  oliargeable  to 
operating  expenses,  must,  when  prepaid,  be  charged  to  account  No.  324,  "  Other 
Prepayments  ". 

322.  Pbepatd  Insurance. 

When  premiums  on  insurance  policies  are  paid  in  advance  of  their  accrual, 
the  amount  prepaid  (whether  paid  in  cash  or  by  the  issue  of  notes  or  other 
negotiable  paper)  shall  be  charged  to  this  account.  As  such  premiums  accrue 
they  shall  be  credited  at  monthly  intervals  to  this  account  and  charged  to  the 
appropriate  expense  account. 

323.  Prepaid  Rents. 

When  rents  are  paid  in  advance  of  the  enjoyment  of  the  term,  the  amount 
prepaid  (whether  paid  in  cash  or  by  the  issue  of  notes  or  othef  negotiable 
paper)  shall  be  charged  to  this  account.  As  the  term  is  consumed,  this 
account  shall  be  credited  at  monthly  intervals  and  the  appropriate  fent 
account  in  the  income  account  shall  be  charged. 

324.  Other  Prepayments. 

When  prepayments  are  made  for  any  other  thing  than  taxes,  insurance,  and 
rente,  above  provided  for,  such  prepayments  shall  be  charged  to  this  account; 


Accounts  fob  Eij:ctbicai.  Cokporations  23 

and  as  the  purpose  of  the  prepayment  is  satisfied,  proportionate  amounts 
shall  be  credited  monthly  to  this  account  and  charged  to  the  appropriate 
expense  or  income  account. 

30.  Suspense. —  When  any  expenditure  is  made,  the  appropriate  disposition 
of  which  is  not  yet  determinable,  or  when  any  loss  occurs  which  under  the 
rules  of  the  Public  Service  Commission  may  be  spread  over  a  period  of  time, 
or  when  any  debit  made  for  any  other  reason  may  be  amortized  through 
charges  made  to  expense  or  other  income  accounts  at  intervals  over  a  period 
of  time,  such  expenditure,  loss,  or  other  dd>it  shall,  except  as  herein  other- 
wise directed,  be  charged  to  an  appropriate  account  in  this  group  of  accoimts. 

Note. —  Bj  "  amortization  "  of  any  charge  or  credit  is  meant  its  gradual  ex- 
tinction. The  word  is  broader  than  the  word  "  depreciation,"  since  the  latter  is 
restricted  ordinarily  to  tangible  property.  Tlie  word  "  depreciation "  also  imports 
more  of  the  idea  of  fluctuating  value  and.  is  complicated  somewhat  with  the  question 
of  cost  of  replacement  at  market  prices.  Because  it  is  considered  unnecessary  in 
connection  with  the  gradual  consumption  or  expiration  of  life  of  capital  to  con- 
sider the  question  of  cost  of  replacement  until  the  replacement  is  actually  made,  at 
which  time  the  cost  of  replacement  is  duly  charged  to  the  appropriate  account, 
and  because  provision  is  necessary  for  the  gradual  extinction  of  certain  charges 
(such  as  those  for  some  kinds  of  capital,  those  for  extraordinary  casualties,  for 
discount  on  debt,  etc.),  to  which  the  term  "depreciation"  does  not  well  apply,  it 
is  considered  advisable  to  use  the  term  "  amortization  "  in  connection  with  the 
extinction  of  such  charges,  and  of  certain  corresponding  credits,  such  as  premiums 
on   debt  outstanding. 

331.   UNAMORTIZED    DEBT    DlSCOUXT    AXD    EXPEXSE. 

When  funded  debt  securities  and  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  less  than  the  sum  of  the  par 
value  of  the  securities  or  other  evidences  of  indebtedness  and  the  interest 
thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of  such  sum 
of  the  par  value  and  accrued  interest  over  the  cash  value  of  the  consideration 
received  shall  be  charged  to  this  account.  To  this  account  shall  also  be 
charged  all  expense  connected  with  the  issue  and  sale  of  evidences  of  debt, 
such  as  fees  for  drafting  mortgages  and  trust  deeds,  fees  and  taxes  for  record- 
ing mortgages  and  trust  deeds,  cost  of  engraving  and  printing  bonds,  certifi- 
cates of  indebtedness,  and  other  commercial  paper  having  a  life  of  more  than 
one  year,  fees  paid  trustees  provided  for  in  mortgages  and  trust  deeds,  fees 
and  commissions  paid  underwriters  and  brokers  for  marketing  such  evidences 
of  debt,  and  other  like  expense.  At  or  before  the  close  of  each  fiscal  period 
thereafter,  a  proportion  of  such  discount  and  expense  based  upon  the  life  of 
the  security  to  maturity  shall  be  credited  to  this  accoimt  and  charged  to 
account  No.  928,  "Amortization  of  Debt  Discount  and  Expense ".  Such  dis- 
count and  expense  may,  if  desired,  be  amortized  more  rapidly  through  charges 
of  all  or  anj-  part  of  it,  either  at  the  time  of  issue  or  later,  to  the  account 
"  Other   Deductions  from   Surplus  ". 

332.  Otheb  Suspexse. 
To  this  account  shall  be  made  all  debits  not  elsewhere  provided  for  and 
the  proper  final  disposition  of  which  is  uncertain.  This  will  include  all  such 
matters  as  expense  of  preliminary  surveys,  plans,  investigations,  etc.,  made 
for  determining  the  feasibility  of  projects  imder  contemplation.  Should  any 
such  project  later  be  carried  to  completion,  such  amounts  shall  be  credited 
to  this  account  and  charged  to  the  proper  capital  account;  should  it  be 
abandoned,  such  amoimts  shall  be  charged  to  "  Corporate  Surplus  or  Deficit  '*. 


24         Public  Service  Commission,  Second  District 

A\  hen  the  proper  disposition  of  any  matter  charged  to  this  account  is  deter- 
mined, it  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
Account. 

31.  Securities  Actually  Issued  and  Later  Re-acquired. —  For  the  case  of 
securities  actually  issued  by  the  corporation  and  later  re-acquired  by  it,  the 
following  account  is  provided: 

340.  Re-acquibed  Securities. 
When  securities,  whether  funded  debt  or  stocks,  have  been  actually  issued 
to  bona  fide  holders  for  value  (or  after  such  issue  by  another  corporation 
have  been  assumed  by  the  accounting  corporation),  and  after  such  issue  (or 
Assvimption)  have  been  acquired  by  the  corporation  under  circumstances  which 
require  that  they  shall  not  be  treated  as  paid  or  retired,  they  shall  be 
charged  at  face  values  to  this  account. 

32.  Debt  defined. — The  word  debt,  as  here  used,  covers  all  absolute  obliga- 
tions to  pay  money  at  a  definite  time  or  times,  or  at  a  time  or  times  which 
are  capable  of  being  made  definite  by  demand  or  other  act  of  the  creditor. 
It  d;)e3  not  cover  contingent  obligations,  such  as  obligations  to  pay  rent  for 
future  enjoyment  of  the  term,  liabilities  of  indorsers  upon  paper  not  yet 
•defaulted,  etc. 

Debt  is  divided  into  Funded  Debt  and  Unfunded  Debt. 

33.  Funded  Debt  defined. —  Funded  Debt  comprises  all  debt  which  by  the 
terms  of  its  creation  does  not  mature  until  more  than  one  year  after  date  of 
creation. 

34.  Unfunded  Debt  defined. —  Unfunded  Debt  comprises  all  debt  which  by 
the  terms  of  its  creation  matures  one  year  or  less  after  the  date  of  creation 
or  after  demand. 

35.  Funded  Debt  accounts. —  Funded  debt  shall  be  divided  in  the  accounts 
into  classes,  such  classes  being  determined  by  the  four  characteristics:  (1) 
mortgage  or  other  lien  or  security  therefor,  (2)  rate  of  interest,  (3)  interest 
■dates,  and  (4)  date  of  maturity.  A  separate  sub-account  shall  be  raised 
for  each  such  class  of  funded  debt,  and  no  two  amounts  of  debt  not  agreeing 
in  respect  of  all  four  of  the  characteristics  above  named  shall  be  included  in 
the  same  sub-account.  The  title  of  each  sub-account  of  funded  debt  shall 
exjiress  the  four  characteristics  above  stated,  that  is  to  say:  mortgage  or 
other  lien  or  security,  rate  of  interest,  dates  of  maturity  of  interest,  and 
•date  of  maturity  of  principal ;  as  e.  g.,  "  First  Mortgage  5%  QF  10,  Aug.  10, 
1928,"  which  means  funded  debt  secured  by  the  company's  first  mortgage, 
"bearing  interest  at  the  rate  of  5  per  cent,  per  annum,  interest  maturing 
■quarterly  on  February  10th,  May  10th,  August  10th,  and  November  10th  of 
each  year,  principal  maturing  August  10,  1928. 

Where  any  portion  of  the  funded  debt  rests  only  on  the  general  credit  of 
the  corporation  and  is  not  specially  secured  or  supported  by  lien  of  any 
character,  it  shall  for  the  purposes  of  these  accounts  be  known  as  a  "  deben- 
ture ".  "  Debentures  "  thus  include  promissory  notes  unsecured  by  mortgage 
■or  other  lien,  also  those  securities  commonly  known  as  "  plain  bonds  ". 

To  the  appropriate  sub-account  in  "  Funded  Debt  "  shall  be  credited  when 
issued  the  par  value  of  the  amount  of  evidences  of  funded  indebtedness  issued. 
The  entry  shall  show  not  only  the  amount  issued  but  the  purpose  for  which 
issued,  and  shall  make  intelligible  reference  to  the  book,  page,  and  account 


Accounts  foe  Electrical  Coeporations      25 

whereon  are  shown  any  discounts  or  premiums  realized  on  the  amount  issued. 
If  the  consideration  received  for  the  issue  is  anything  else  than  money,  the 
entry  shall  show  further  the  principal  to  whom  issued,  and  shall  describe 
with  sufficient  particularity  to  identify  it  the  actual  consideration  received 
for  the  issue.  If  the  issue  in  any  case  is  to  an  agent  of  an  undisclosed  prin- 
cipal, the  name  and  business  address  of  such  agent  and  the  fact  of  his  agency 
ehall  be  shown  in  the  entry. 

36.  Unfunded  Debt  accounts. —  The  accounts  for  unfunded  debt  are  defined 
as  follows: 

351.  Taxes  Accbued. 

Credit  to  this  account  at  the  close  of  each  month  the  taxes  accrued  during 
the  month,  and  make  corresponding  charges  to  the  appropriate  "  Taxes " 
account.  Credits  to  the  account  "Taxes  Accrued"  will  necessarily  be  based 
upon  estimate  until  the  amount  of  tax  levied  for  the  tax  period  is  known; 
such  estimates  shall  be  based  upon  the  best  data  available,  and  as  soon  a» 
the  amount  of  tax  for  the  period  is  known  the  account  involved  shall  be 
adjusted  to  conform.  When  any  tax  is  paid  it  shall  be  charged  to  this 
account  and  credited  to  "  Cash  "  or  other  suitable  account. 
352.  Recei\'eb's  Certificates. 

When  any  receiver  acting  under  the  orders  of  a  competent  court  is  in  poa- 
sessjon  of  the  property  of  the  corporation  and  under  the  orders  of  such  court 
issues  certificates  of  indebtedness  chargeable  upon  such  property,  the  par 
value  of  such  certificates  shall  be  credited  to  this  account.  Interest  accruing 
upon  such  certificates  shall  also  be  credited  monthly  to  this  account. 

353.  Judgments  Unpaid. 

When  any  judgment  of  indebtedness  is  rendered  by  a  court  of  competent 
jurisdiction  against  the  corporation,  or  any  fine  or  penalty  requiring  the 
payment  of  money  is  assessed  bj'  such  a  court  against  the  corporation,  and  na 
appeal  accompanied  by  stay  of  execution  has  been  taken  therefrom  within 
the  time  allowed  by  law  for  such  appeal,  the  amount  of  such  judgment  shall 
be  credited  to  this  account,  and  the  entry  shall  designate  the  action  or  suit 
as  a  consequence  of  which  such  judgment  is  pronounced  or  such  fine  or  penalty 
assessed.  The  designation  of  the  action  or  suit  shall  show  the  court,  the 
term  thereof,  the  parties,  and  the  character  of  the  action  or  suit.  Interest 
accruing  upon  any  such  judgment  shall  be  credited  monthly  to  this  account. 

Note. —  In  case  of  appeal  and  affirmance  In  whole  or  in  part  from  which  Judg- 
ment of  affirmance  a  further  appeal  lies,  the  same  rule  shall  apply  as  upon  entry 
of  original  Judgment. 

354.  INTEKEST  Accbued. 

Credit  to  this  account  at  the  close  of  each  month  the  interest  accrued 
during  the  month  upon  indebtedness  of  the  corporation.  When  such  interest 
is  paid  it  shall  be  charged  to  this  account  and  credited  to  "  Cash  "  or  other 
suitable  account. 

The  account  "  Interest  Accrued "  does  not  include  interest  on  judgments, 
nor  that  upon  receiver's  certificates.  The  interest  accruing  on  any  judgment 
against  the  corporation  or  upon  any  receiver's  certificate  shall  be  credited 
to  the  account  to  which  such  judgment  or  receiver's  certificate  stands  credited. 

Note. —  When  coupon  Interest  matures  It  should  be  transferred  from  the  sub- 
account "  Unmatured  Coupon  Interest  Accrued "  to  the  sub-account  "  Coupon  In- 
terest Matured".  When  such  Interest  Is  paid  out  of  coupon  special  deposits  the 
■nb-account  "  Coupon  Interest  Matured "  should  be  charged  and  the  account 
"  Coupon  Special  Deposits  "  credited. 


2G         Public  Service  Commission,  Second  Distkict 

355.  Dividends  Declabed. 

When  any  dividend  is  declared  it  shall  be  credited  to  thia  account  and 
here  remain  until  i.t  is  paid,  when  it  shall  be  charged  to  this  account  and 
credited  to  "  Cash  "  or  other  suitable  account. 

356.  Bills  Payable. 

When  any  note,  draft,  or  other  bill  payable  which  matures  not  later  than 
one  year  after  date  of  issue  (or  of  demand)  or  assumption  by  the  corporation 
of  primary  liability  thereon  is  issued  or  assumed,  the  par  value  thereof  shall 
be  credited  to  this  account,  and  when  it  is  paid  it  shall  be  charged  to  this 
account  and  credited  to  "  Cash  "  or  other  suitable  account. 

E3o7a.  Consumers'  Deposits  —  Electric. 

Credit  to  this  account,  as  such  deposits  are  made,  all  cash  deposited  with  the 
corporation  by  consumers  as  security  for  the  payment  of  electric  bills.  De« 
posits  refunded  shall  be  charged  to  this  account  and  credited  to  "  Cash ". 
Deposits  applicable  to  uncollectible  or  worthless  electric  bills  shall,  at  the  close 
of  tlie  fiscal  year  (or  earlier,  at  the  option  of  the  accounting  corporation), 
be  credited  to  the  account  of  the  consumer  involved  and  debited  to  this 
account. 

357b.  Other  Accounts  Payable. 

(  redit  to  this  account  when  incurred  all  liabilities  of  the  corporation  upon 
open  accounts,  except  those  provided  for  in  the  foregoing  account  "  Con- 
sumers' Deposits  ". 

358.  Other   Unfunded  Debt. 

Credit  to  this  account  at  face  value  all  unfunded  debt  upon  which  the 
corporation  is  liable  and  which  is  not  elsewhere  provided  for. 

37.  Reserves. — ^Reserves  shall  be  classified  as  Permanent  and  Temporary. 

38.  Permanent  Reserves  defined. — By  Permanent  Reserves  are  meant  those 
that  must  be  maintained  intact  during  the  life  of  the  corporation.  Permanent 
reserves  shall  be  classified  into  the  two  classes:  Premiums  on  Stocks,  and 
Other  Permanent  Reserves, 

371.  Premiums  on  Stocks. 

Premiums  on  stocks  shall  be  sub-classified  with  respect  to  the  several  classes 
of  stocks,  for  definitions  of  which  see  the  accounts  under  the  head  "  Stocks  ". 
A  sub-account  shall  be  kept  for  each  particular  class  of  stocks,  and  such 
sub-accounts  shall  be  severally  entitled: 

Premiums  on  Debenture  Stocks, 

Premiums  on  First  Preferred  Stocks, 

Premiums  on  Second  Preferred  Stocks,  etc.,  and 

Premiums  on  Common  Stocks. 

When  a  premium  is  realized  upon  an  issue  of  any  particular  class  of  stock, 
such  premium  shall  be  credited  to  the  sub-account  above  provided  for  such 
class  of  stock,  and  such  credit  shall  remain  in  such  account  so  long  as  such 
stock  remains  outstanding.  By  a  premium  realized  (as  the  words  are  above 
used)  is  meant  the  excess  of  the  actual  money  value  (at  the  time  of  issue 
of  the  stock)  of  the  consideration  received  for  such  issue  over  the  par  value 
of  the  amount  of  stock  issued.  If  the  stock  is  issued  by  the  corporation  to 
its  treasurer  or  other  agent,  the  excess  of  the  actual  money  value  of  the 
consideration  obtained  by  such  agent  in  exchange  for  such  stock  over  the  par 
value  thereof  shall  be  considered  the  premium  realized. 


AccouMs  FOE  Electbical  Corporations  27 

372.  Other  Pebmane-st  Reserves. 
Credit  to  this  account  all  reserves  not  above  provided  for  created  to  remain 
intact  until  the  dissolution  of  the  corporation.  A  separate  sub-account  shall 
be  created  for  each  particular  purpose  for  which  a  reserve  is  raised,  and 
the  purpose  of  the  reserve  shall  be  designated  in  the  title  of  the  account 
thereof  and  shall  be  expressed  in  full  in  the  first  entry  in  such  account. 

39.  Temporary  Reserves  defined. —  By  Temporary  Reserves  are  meant  those 
that  are  not  intended  to  remain  intact  during  the  life  of  the  corporation. 
Temporary  reserves  shall  be  classified  as  Contractual  Reserves  and  yon-con- 
trajstnal  Reserves. 

40.  Contractual  Reserves  defined. —  Contractual  Reserves  are  reserves  neces- 
sitated by  contracts  of  the  corporation,  as  e.  g.,  reserves  to  cover  sinking 
funds  provided  for  in  mortgages,  etc.  A  separate  sub-account  shall  be  raised 
for  each  particular  contractual  reserve,  and  to  such  account  shall  be  credited 
all  appropriations  and  accumulations  made  in  accordance  with  the  contract 
provisions  under  which  such  reserve  is  created.  The  purpose  of  the  reserve 
shall  be  designated  in  the  title  of  the  account  thereof  and  sliall  be  expressed 
in  full  in  the  first  entry  in  Such  account. 

41.  Non-contractual  Reserves  defined. —  y on-contractual  Reserves  are  such 
temporary  reserves  as  are  raised  without  being  required  under  any  contract. 
Noncontractual   reserves  are  divided   into  Required  and   Optional. 

4a.  Required  Reserve  accounts. —  Required  reserves  are  provided  for  in  the 
following  accounts: 

374.    Accrued  Amortization  of  Capital. 

Credit  to  this  account  such  amounts  as  are  charged  from  time  to  time  i/y 
"  Operating  Expenses,"  or  other  accounts  to  cover  depreciation  of  plant  and 
equipment,  and  other  amortization  of  capital.  When  any  capital  is  retired 
from  service,  the  original  money  cost  thereof  (estimated  if  not  known,  and 
where  estimated,  that  fact  and  the  facts  upon  which  the  estimate  is  based 
shall  be  stated  in  the  entry),  less  salvage,  shall  (except  as  provided  in 
account  No.  ElOO,  "Fixed  Capital,  December  31,  1908,")  be  charged  to  this 
account.  Tlie  amount  originally  entered  or  contained  in  the  charges  to  any 
capital  account  in  respect  of  such  capital  so  going  out  of  service  shall  be 
credited  to  such  capital  account,  and  any  necessary  adjusting  entry  made 
to  the  appropriate  sub-account  under  the  account  "  Corporate  Surplus  or 
Deficit ". 

375.  Unamortized  Premium  on  Debt. 

When  funded  debt  securities  or  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  greater  than  the  sum  of  the 
par  value  of  such  securities  or  other  evidences  of  indebtedness  and  the  interest 
thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of  the  cash 
value  of  such  consideration  received  over  the  sum  of  the  par  value  of  the 
securities  or  other  evidence  of  indebtedness  and  the  accrued  interest  shall  be 
credited  to  this  account.  At  monthly  intervals  thereafter  a  proportion  of 
such  premium  based  upon  the  life  of  the  security  or  other  evidence  of  in- 
debtedness to  maturity  shall  be  charged  to  this  account  and  credited  to 
"Amortization  of  Premium  on  Debt"  in  "Income"  account;  or  at  the  option 
of  tlie  corporation  the  charge  to  this  account  may  be  delayed  to  a  time  not 
later  than  the  date  of  maturity  of  the  debt,  in  which  case  the  proportion  ap- 


28  Public  Service  Commission,  Second  Disteict 

plicable  to  the  period  covered  by  the  then  current  income  account  shall  be 
credited  to  the  account  "Amortization  of  Premium  on  Debt,"  and  the  re- 
mainder of  the  credit  shall  be  to  the  account  "  Other  Additions  to  Surplus  ". 
376.  Other  Required  Reserves. 
Credit  to  this  account  all  required  reserves  not  elsewhere  provided  for.  Th* 
first  entry  of  a  credit  to  this  account  with  respect  to  any  particular  reserve 
shall  show  the  purpose  of  the  reserve,  and  every  subsequent  entry  Witb 
respect  to  that  reserve  shall  designate  the  reserve  to  which  it  relates. 

43.  Optional  Reserve  accounts. —  Optional  Reserves  are  those  the  creation  of 
whicli  is  solely  within  the  discretion  of  the  corporation.  For  such  reserves 
the  following  two  accounts  are  provided: 

381.  Casualties  and  Insurance  Reserve. 
When  any  admitted  liability  arises  because  of  loss  or  damage  to  the  prop- 
erty of  others,  or  of  injuries  to  employees  or  other  persons,  the  amount  of 
the  liability  may  (if  not  previously  provided  for  by  insurance  or  self-insur- 
ance) be  charged  to  the  appropriate  opin-ating  expense  or  other  accounts  and 
credited  to  this  account,  against  which  (in  such  case)  the  actual  cost  of  satis- 
faction of  the  liability  shall  be  charged  when  the  matter  is  determined.  If 
the  extent  of  the  liability  can  not  be  ascertained  promptly  after  the  lia- 
bility arise?,  it  may  be  estimated  as  accurately  as  practicable  for  the  purpose 
of  determining  the  immediate  charge  to  the  expense  or  other  appropriate 
account,  in  which  case  the  matter  shall  be  adjusted  when  the  extent  of  the 
liability  is  definitely  ascertained.  If  the  loss  is  of  such  character  that  it  is 
in  whole  or  in  part  indemnifiable  under  any  contract  of  insurance  carried  by 
the  corporation,  the  indemnifiable  portion  of  the  loss  shall  be  charged  to  the 
insurer  and  credited  to  "  Casualties  and  Insurance  Reserve  ".  Also  credit  to 
this  account  tlip  amounts  charged  to  the  operating  expense  account  "Insur- 
ance "  to  cover  self-carried  risks. 

382.  Other  Optionai.  Reserves. 
A  sub-account  shall  be  raised  for  each  particular  reserve,  and  its  title  shall 
designate  the  purpose  of  such  res^erve  and  the  first  entry  therein  shall  express 
in  full  such  purpose. 

44.  Stocks  defined. —  By  Stocks  of  a  corporation,  as  the  term  is  here  used, 
are  meant  those  securities  which  represent  jjermanent  interests  in  the  corpora- 
tion or  interests  which,  if  terminable,  are  so  only  at  the  option  of  the  cor- 
poration. 

45.  Stocks  classified. —  Stocks  are  classified  as  — 
Debenture  Stocks, 

First  Preferred  Stocks, 

Second  Preferred  Stocks,  etc.,  and 

Common  Stocks. 

46.  Debenture  Stocks  defined. —  Debenture  Stocks  are  those  issued  under  a 
contract  to  pay  absolutely  thereon  at  specified  intervals  a  specified  return. 

47.  First  Preferred  Stocks  defined. — First  Preferred  Stocks  are  those  which 
have  the  first  claim  upon  such  dividends  as  may  be  distributod.  They  may  be 
cumulative  or  noncumulative,  participating  or  nonparticipating.  If  cumu- 
lative, the  amount  by  which  the  dividend  at  any  dividend  period  fails  to. reach 
the  stipulated  rate  is  carried  forward  to  continue  as  a  claim  upon  dividends 


Accounts  fob  Eubctbicai,  Cokporatioxs  29 

until  satisfied;  if  noneumulative,  such  amoant  Upaea.  If  a  first  preferred  sto^ 
is  participating,  it  is  not  limited  to  tlie  atipnlated  ra,te  in  the  amoimt  of  diri- 
dends  which  it  may  reoeive,  but  is  entitled  to  participate,  in  aeeordanee  with 
the  terms  of  the  contract  under  which  it  is  issued,  in  further  dividends;  if 
nonparticipating,  it  is  limited  to  the  stipulated  rate. 

48.  Second  Preferred  Stocks  defined. —  Second  Pr^erred  Stocks  are  thoaa 
whose  claims  in  the  distribnfiaai  at  dividends  are  next  after  those  of  first 
inferred  stocks.  These  rtoeka  may  also  be  cumulative  or  noneomnlaUve,  par- 
ticipating or  nonparticipating. 

49.  Common  Stocks  defined. —  ComwuM  Stocks  are  tiiose  whose  claims  in  tha 
distribution  of  dividends  are  subordinate  to  the  claims  of  all  other  stocks. 

50L  Votiiqs  Powers. — iitocks  differ  ako  in  r^ard  to  ihe  voting  powcn  inci- 
dent to  ownership  of  them. 

51.  Retirement  of  Stocks. —  Stocks  are  sometimes  issued  under  contracts 
wherein  the  issuing  corporation  reservea  to  itself  the  right  to  retire  them  at 
its  option,  either  absolute  or  subject  to  conditions  expressed  in  the  contracts 
whereunder  the  stocks  are  issued. 

52.  Separate  account  required  for  each  class  of  stocks. —  In  the  accounts  of 
sto^s  outstanding,  a  separate  account  shall  be  raised  for  each  class  of  stodc 
issued,  and  no  two  stodcs  shall  be  considered  of  the  same  class  unless  they 
are  equal  in  their  interest  or  dividend  rights,  their  voting  rights,  and  tho 
conditions  under  which  they  may  be  retired.  The  characteristics  of  any  class 
of  stodES  in  these  three  regards  shall  be'  designated  in  the  title  of  the  aeeomit 
raised  to  cover  such  stocks  and  shall  be  clearly  expressed  in  the  first  entry 
in  such  account.  To  the  account  for  any  class  of  stocks  shall  be  credited 
when  issued  the  par  value  of  the  amount  of  stock  of  that  class  issued.  If 
such  issue  is  for  money,  that  fact  shall  be  stated;  and  if  for  any  other  am- 
eideration  than  money,  the  person  to  whom  issued  shall  be  designated,  and 
the  consideration  for  which  issued  shall  be  described  with  sufficient  par- 
ticularity to  identify  it;  if  such  issue  is  to  the  treasurer,  or  other  agent  of 
the  corporation,  to  be  by  him  disposed  of  for  the  benefit  of  the  eorporatian, 
that  fact  and  the  name  of  such  agent  shall  be  shown;  and  such  agent  shall 
In  his  account  of  the  disposition  thereof  show  the  like  details  concerning  the 
consideration  realized  thereon,  which  account  when  accepted  by  the  oorpo- 
rati<m  shall  be  preserved  as  a  corporate  record.  If  the  fair  cash  value  of 
the  eonsideraUtm  realized  upon  the  issue  of  any  amoimt  of  stock  is  greater 
than  the  par  value  of  such  stock,  the  excess  shall  be  credited  to  the  account 
"Premiums  on  Stocks,"  and  corresponding  reference  thereto  shall  be  con- 
tained in  the  entry  relating  to  such  stock  in  Uie  stock  account. 


SCHEDULE  B. 


INCOME  ACCOUNT. 

I.  Income  and  Indicant  accounts  compared. —  A  comparison  of  the  balances- 

in  the  foregoing  accounts  (Schedule  A)  at  any  particular  moment  will,  if  the 
accounts  have  been  properly  kept,  show  the  then  existing  condition  of  a  cor- 
poration's affairs  so  far  as  such  condition  can  be  shown  tlifougli  tlu'  accounts. 
The  group  of  accounts  just  defined  is  sometimes  called  the  Balance  Sheet  or 
Indicant  accounts.  Their  balances  indicate  the  condition  of  the  corporation 
at  any  particular  time.  These  accounts  with  their  subsidiary  accounts  are 
all  that  are  necessary  prior  to  the  time  when  the  corporation  becomes  what 
may  be  called  a  "  going  concern  ". 

When  a  corporation  begins  operations  it  requires  an  additional  group  of 
accounts  in  which  to  classify  in  convenient  form  the  accounting  history  of 
the  various  changes  it  undergoei.  Such  group  of  accounts  brings  together 
or  accumulates  the  account  of  the  various  incidents  of  the  corporation's  his- 
tory. This  group  of  accounts  may  be  called  the  Income  account.  Thoy  are 
made  up  usually  on  a  yearly  basis  and  are  closed  into  one  grand  account 
called  "  Corporate  Surplus  or  Deficit,"  which  ties  together  this  group  oh 
accounts  and  the  preceding  group. 

2.  Divisions  of  Income  account. —  The  principal  divisions  of  this  group  of 
accounts  are  the  Revenue  accounts,  the  Revenue  Deduction  accounts,  the- 
Income  Deduction  accounts,  and  the  Appropriation  accounts. 

3.  Revenues  defined. —  By  Revenues,  as  the  word  is  used  herein,  are  mean* 
all  amounts  of  money  which  the  corporation  receives  or  becomes  lawfully  en- 
titled to  recover  for  services  rendered,  for  products  sold,  as  gross  profits  oi> 
merchandise  sold,  or  as  a  return  upon  its  property  (or  interests  in  property). 
Revenues  are  classified  as  Operating  Revenues  and  Non-operating  Revenues. 

4.  Operating  Revenues  defined. — Operating  Revenues  are  those  derived  from 
the  sale  of  products  and  merchandise,  from  services  rendered,  and  from  returtt 
on  property  used  by  the  person  or  corporation  in  its  own  operations. 

5.  Non-operating  Revenues  defined. —  you-opcrating  Rfvenucs  are  those 
derived  as  a  return  upon  the  property  of  the  corporation  In  the  hands  of 
others  or  from  its  interests  in  property  in  the  hands  of  others.  They  may  be 
sub-classified  as  Rents,  Interest,  Dividends,  and  Miscellaneous. 

6.  Revenue  Deductions  defined. —  Revenue  Deductions  include  Expenses, 
Taxes,  and  Uncollectible  Bills. 

7.  Expenses  defined. —  Expenses  are  those  outgoes  (including  capital  con- 
sumed) necessary  to  the  production  of  the  commodities  sold  and  the  services 
rendered,  and  to  the  collection  of  the  revenues.  They  are  divided  into  Operat- 
ing Expenses  and  Non-operating  Expenses.  Operating  Expenses  are  those 
incident  to  the  operating  revenues. 

[301 


Accounts  fok  Electrical  Cokpoeations      31 

8.  Taxes  defined. —  Taxes  are  those  annual  or  other  payments  exacted  hj 
governments  for  the  purpose  of  raising  funds  for  public  uses. 

9.  Uncollectible  Bills  defined. —  When  a  corporation  is  engaged  regularly 
in  rendering  to  general  consumers  a  service,  or  in  supplying  to  such  con- 
sumers a  commodity  (as  e.  g.,  electric  energy  or  gas  for  light,  heat,  cr 
power),  current  accounts  or  claims  against  such  consumers  for  such  service 
rendered  or  commodity  supplied  which  are  incapable  of  collection  by  the  exer- 
cise of  reasonable  diligence  are  included  under  the  name  Uncollectible  Bills. 

10.  Gross  Income,  Income  Deductions,  and  Net  Corporate  Income  defined. — 
Revenues,  diminished  by  expenses,  taxes,  and  uncollectible  bills,  give  an 
amount  called  Gross  Income,  which  is  applicable  to  corporate  and  leased 
properties.  Gross  income  is  subject  to  several  compulsory  deductions,  mostly 
contractual,  like  rent,  interest,  etc.,  and  the  remainder  after  these  are  made^ 
is  called  Xet  Corporate  Income,  which  being  subject  only  to  the  discretion  of 
the  corporation  is  most  conveniently  carried  directly  to  the  corporate  sur- 
plus. The  accounts  covering  the  compulsory  deductions  from  gross  income,  as 
above  defined,  are  called  the  Income  Deduction  accounts. 

11.  Appropriation  accounts  defined. —  The  accounts  covering  the  yearly 
changes  in  the  corporate  surplus  are  called  the  Appropriation  accounts,  since 
practically  all  of  the  matters  covered  by  them  are  within  the  discretion  of  the 
corporation,  although  they  also  include  certain  adjustments  made  because 
of  facts  of  previous  years  imperfectly  accounted  for  at  the  time  (whether 
through  error  or  through  lack  of  information),  and  certain  other  minor 
matters  like  extraordinary  expenses  not  chargeable  as  deductions  from  reve- 
nues; also  such  matters  as  profits  on  the  sale  of  capital,  and  profits  and 
losses  on  the  sale  of  investments. 

12.  Definitions  of  Electric  Operating  Revenue  accounts. —  Credits  to  the 
various  revenue  accounts  shall  be  made  upon  the  basis  of  bills  rendered  or 
of  gross  prices.  Discounts  for  prompt  payment,  corrections  of  overcharges, 
overcollections  theretofore  credited  and  afterward  corrected,  authorized  abate- 
ments and  allowances,  and  other  corrections  and  deductions  shall  be  charged 
to  the  revenue  account  to  which  they  relate.  In  the  following  definitions  of 
accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solely  for 
convenience  of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 

401.  Municipal  Street  Lighting  —  Abc* 
Credit  to  this  account  all  revenues  derived  from  lighting  streets  for  munici-- 
pal  corporations  by  means  of  arc  lamps. 

402.  Municipal  Street  Lighting  —  Incandkscent. 

Credit  to  this  account  all  revenues  derived  from  lighting  streets  for  munici- 
pal corporations  by  means  of  incandescent  electric  lamps. 

Note. —  In  the  foregoing  two  accounts  the  word  '•  streets  "  is  to  he  interpreted 
to  include  parks,  plazas,  and  all  other  public  places  not  classified  as  buildings. 

403.  Lighting  Municipal  Buildings  —  Electbic. 
Credit  to  this  account  all  revenues  derived  from  lighting  municipal  build- 
ings by  means  of  electric  lamps,  and  from  electric  energy  supplied  for  such 


'  Charges  to  this  and  the  following  revenue  accounts  must  be  made  In  such  wise 
as  to  permit  their  classiflcatlon  in  the  annual  report  of  the  corporation  to  the 
Public  Service  Commission. 


32  Public  Service  Commission,  Second  District 

purposes,  or  for  heat  or  power  in  municipal  buildings  where  such  energy  ii 
supplied  at  lighting  rates  and  is  not  separately  measured. 

404.  MuNiciPAi,  Heat  and  Power  —  Electbic. 
Credit  to  this  account  all  revenues  derived  from  municipal  corporations  for 
electric  energy  supplied  at  special  heat  or  power  rates  to  such  corporations 
for  the  production  of  heat  and  power. 

405.  Miscellaneous  Electbic  Revenue  —  Municipal. 
Credit  to  this  account  all  revenues  derived  from  supplying  electric  energy 
to  municipal  corporations  and  not  provided  for  in  the  foregoing  accounts; 
also  those  from  the  letting  of  meters,  motors,  and  other  electric  equipment 
to  such  corporations. 

406.  Commebcial  Flat  Rate  Lighting. 
Credit  to   this   account   all   revenues   derived   from  consumers   other  than 
municipal  corporations  for  electric  lighting  at  fiat  rates  per  year,  per  month, 
per  night,  per  hour,  or  other  time  unit,  or  on  any  basis  independent  of  the 
quantity  of  energy  supplied. 

407.  COMMEBCLAL   FLAT    RATE    POWEB. 

Credit  to  this  account  all  revenues  derived  from  all  consumers,,  except 
municipal,  railroad,  and  other  electrical  corporations,  for  electric  energy 
supplied  for  heat  or  power  at  special  flat  rates  per  year,  per  month,  per  night, 
per  hour,  or  other  time  unit,  or  on  any  basis  independent  of  the  quantity  of 
energy  supplied. 

408.  Commebcial  Metebed  Lighting. 

Credit  to  this  account  all  revenues  derived  from  all  consumers,  except 
municipal  corporations,  for  measured  electric  energy  supplied  for  electric 
lighting  where  the  total  receipt  is  dependent  on  the  quantity  of  energy 
supplied. 

Note. —  Where  electric  energy  flowing  through  any  meter  Is  used  by  any  other 
consumer  than  a  municipal  corporation  for  both  arc  and  Incandescent  lighting,  or 
for  arc  and  Incandescent  lighting  and  incidentally  for  power  purposes  such  as 
running  fans,  sewing  machines,  etc.,  the  revenues  derived  therefrom  shall  be  credited 
to  this  account 

409.  Commebcial  Metebed  Poweb. 

Credit    to   this   account   all   revenues   derived   from   all   consumers,   except 
municipal,  railroad,  and  other  electrical  corpwrations,  for  measured  electric 
energj'   supplied   for   boat   or   power   at   special    heat   or   power   rates,   where 
the  total  receipt  is  dependent  on  the  quantity  of  energy  supplied. 
410.  Railboad  Cobpobations. 

Credit  to  this  account  all  revenues  derived  from  electric  energy  sold  to 
street  and  other  railroad  corporations  for  the  propulsion  of  their  cars,  for 
running  their  shops,  and  for  other  power,  and  for  heating  purposes.  If  such 
energy  is  incidentally  used  for  lighting  also,  but  the  portion  used  for  lighting 
is  not  separately  measured,  the  revenue  therefrom  shall  be  included  in  this 
account. 

411.  Other  Electbical  Cobpobations. 

Credit  to  this  account  all  revenues  derived  from  electric  energy  sold  to 
other  electrical  corporations  to  be  by  them  distributed  over  their  own  lines  to 
consumers.  If  any  portion  of  such  energy  is  incidentally  consumed  by  such 
corporations  for  their  own  benefit,  whether  for  light,  heat,  or  power,  it  shall 


Accounts  fok  Ei.ixtiucai.  Cokpokations  33 

be  included  herein,  if  not  separately  measured,  or  if  included  under  the  same 
contract  with  that  which  is  distributed  by  them  to  consumers. 
421.  Rent  of  Electric  Meters. 

Credit  to  this  account  all  revenues  derived  from  the  letting  of  electric 
meters  to  others  than  municipal  corporations. 

422.  Rent  of  Electric  Appliances. 

Credit  to  this  account  all  revenues  derived  from  the  letting  of  electric 
motors,  fans,  heating  appliances,  batteries,  lamps,  and  other  electric  apparatus 
and  appliances  (except  meters)  to  others  than  municipal  corporations. 
Where  the  contract  of  letting  names  only  a  single  consideration  for  both  the 
letting  and  the  maintenance  of  the  appliances  so  let,  the  entire  revenue  shall 
be  included  in  this  account. 

423.  Electric  ^Ierchandisk  and  Jobbing  Revenue. 

Credit  to  this  account  all  receipts  from  the  sale  of  electric  merchandise  andl 
from  electric  jobbing.  Charge  to  this  account  the  cost  to  the  accounting 
corporation  of  electric  merchandise  sold,  such  cost  including  transportation i 
charges  paid  on  such  goods. 

Credit  also  to  this  account  tlie  profit  or  commission  accruing  to  the  cor- 
poration on  all  jobbing  work  performed  by  it  as  agent  under  agency  contracts,. 
whereunder  it  undertakes  to  do  jobbing  work  for  another  for  a  stipulated! 
profit  or  commission  upon  its  actual  expense  for  labor,  materials,  and  supplies;. 

Note  A. —  In  Jts  annual  reports  to  the  Public  Service  Commission  the  reporting 
corporation  will  be  required  to  analyze  the  credits  and  debits  to  this  account. 

Note  B. —  This  account  does  not  include  receipts  from  the  sale  of  superseded 
equipment,  or  of  junk  or  other  scrap  or  salvage. 

424.  Sale  of  Byproducts. 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  ashes,  cinders, 
chemical  waste,  gas  producer  residuals,  and  other  byproducts  of  electric 
operations. 

425.  Joint  Electric  Rent  Revenue. 

When  any  corporation  engages  in  electric  operations  for  the  production  of 
some  of  its  product  for  the  benefit  of  another  or  others  under  an  arrangement 
for  apportioning  the  expense  upon  the  basis  of  the  relative  amounts  of  benefit 
to  the  several  participants  in  the  arrangement,  if  such  arrangement  provides 
for  the  receipt  by  the  corporation  of  an\-  profit  or  return  upon  its  property, 
such  profit  or  return  upon  property  shall,  as  it  accrues,  be  credited  month 
by  month  to  this  account.  Such  profit  or  return  must  be  over  and  above  any 
provision  for  wear  and  tear  and  depreciation  of  plant  involved  in  the  said 
production,  and  the  amount  thereof  must  be  as  provided  in  the  arrangement 
under  which  the  joint  production  occurs. 

426.  Break-dowx  Service. 
Credit  to  this  account  all  revenues  derived  from  the  insurance  of  a  supply 
of  electric  energy  to  a  stipulated   amount   to  concerns  ordinarily  producing 
their  own  or  procuring  it  from  sources  other  than  the  corporation  acting  as 
insurer. 

427.  Otheb  Miscellaneous  Electric  Rs:ventje, 
Credit  to  this  account  all  revenues  derived  from  others  than  municipal  cor- 
porations for  the  supply  of  electric  energy  and  service  and  from  other  electric 
operations  not  includible  in  any  of  the  foregoing  accounts. 

2 


34:  Public  Sekvice  Commission,  Secoxd  District 

13.  Revenue  from  Outside  Operations. — The  detailed  revenue  accounts  for 
operations  other  than  the  above  mentioned  will  be  provided  for  elsewhere. 

14.  Operating  Expenses  defined. —  By  the  operating  expenses  of  a  corpora- 
tion are  meant  such  expenses  as  are  necessary  to  the  maintenance  of  the 
corporate  organization,  the  rendering  of  services  required  or  authorized  by 
law,  the  sale  of  merchandise,  the  production  (including  herein  capital  con- 
sumed) and  disposition  of  the  commodities  produced,  and  to  the  collection 
of  the  revenues  therefor.  Expenses  directly  incident  to  the  collection  of  non- 
operating  revenues  and  the  maintenance  of  the  property  from  which  non- 
operating  revenues  are  derived  are  excluded  from  operating  expenses. 

15.  Definitions  of  certain  terms  used  in  connection  with  expense  accounts. — 
Except  where  some  other  meaning  is  clearly  specified  in  the  definitions  of  the 
accounts,  the  following  words,  wherever  used  herevmder,  liave  the  meanings 
below  stated: 

Cost  means  cash  or  money  cost,  and  not  price  based  on  a  term  of  credit. 

Labor  means  human  services  of  whatever  character. 

Cost  of  labor  includes  wages,  salaries,  and  fees  paid  to  persons  for  their 
services. 

Cost  of  materials  and  supplies  includes  all  specifically  assignable  transporta- 
tion charges  incurred  in  obtaining  the  delivery  of  such  materials  and  sup- 
plies upon  the  premises  of  the  purchaser,  and  cost  of  any  special  tests  made 
thereon  prior  to  their  acceptance;  and  in  case  the  accounting  person  or  cor- 
poration desires,  it  may  include  a  suitable  proportion  of  store  expenses  (when 
the  materials  and  supplies  are  passed  through  stores)  and  the  cost  of  further 
transportation  to  the  place  of  consumption,  and  a  suitable  proportion  of  the 
expenses  of  the  purchasing  department,  in  which  case  a  corresponding  credit 
shall  be  made  to  the  suitable  expense  account  as  hereinafter  provided. 

Cost  of  repairs,  when  made  by  the  accounting  person  or  corporation,  includes 
cost  of  labor  expended  and  material  consumed,  less  salvage,  if  any. 

Note. —  It  Is  not  required  that  the  transportation  element  of  cost  sliall  be  as- 
signed with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
material  or  supply.  Where  a  single  transportation  Item  covers  a  multitude  of 
things  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  are  charged  to. 

16.  Definitions  of  Electric  Operating  Expense  accounts. —  In  the  following 
definitions  of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are 
inserted  solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or 
of  the  definitions: 

GENERAL   ACCOUNTS. 

I.  Production  Expenses. 
II.  Transmission  Expenses. 

III.  Electric  Storage  Expenses. 

IV.  Distribution  Expenses. 
V.  Utilization  Expenses. 

VI.  Commercial  Expenses. 

VII.  General  and  Miscellaneous  Expenses. 

I.  PRODUCTION    EXPENSES.- 

Nora. —  In  case   the  accounting  corporation  operates  two  or   more  separate  and 

distinct  plants  for  the  production   of  electric  energy,   It  will  be   required  to  keep 

(with   the   detail   herein  prescribed)    separate  accounts  covering  production  at  tb« 


Accounts  fob  Electkical  Coepokations      35 

several  plants.  Charges  to  these  and  other  operating  expense  accoiints  most  be 
made  in  such  detail  as  to  permit  their  analysis  in  accordance  with  the  prescribed 
heads  in   all  cases  except  the  labor  accounts. 

E501.  Statiox  Scperixtexdexce  axd  Labor. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Statiox  Superixtexdexce  axd  Cabe:  This  head  includes  salaries  and  per- 
sonal expenses  of  superintendents  and  assistants,  chemists,  clerks,  janitors, 
watchmen,  elevatormen,  and  also  that  portion  of  the  salaries  and  expenses 
of  the  engineering  staff  assignable  to  the  generating  plant. 

BoiLEB  Labor:  This  head  includes  the  cost  of  labor  in  boiler  room  and 
elsewhere  in  and  about  the  premises  having  to  do  with  making  steam,  in- 
cluding such  labor  as  that  of  fire  room  engineers  and  assistants,  water  tend- 
ers., firemen,  coal  handlers,  ash  handlers,  boiler  cleaners,  and  feed-pump  men. 

PhODUCER  Labor:  This  head  includes  the  cost  of  all  labor  in  and  about 
the  premises  having  to  do  with  the  production  of  power  gas. 

ExGiXE  L^BOB:  This  head  includes  the  cost  of  labor  on  prime  movers  of 
all  kinds,  including  such  labor  as  that  of  chief  engineers  and  assistants, 
engineers,  oilers,  wipers,  and  machinists. 

Eij:ctbic  Labor:  This  head  includes  the  cost  of  all  labor  in  connection 
with  the  electric  generating  apparatus  and  devices,  beginning  with  the  gen- 
erators direct  connected  or  belted  to  the  prime  movers,  and  including  the 
switchboard,  feeder  terminal  board,  and  to  where  the  electric  current  leaves 
thj  station  for  the  transmission  or  distribution  system,  including  such  labor 
as  that  of  system  operators  or  load  dispatchers;  foreman  over  regulators, 
regulators,  and  assistants;  switchboard  men,  brushmen,  wipers,  and  wiremen. 

E502.  Fuel  fob  Power. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Fuel  fob  Steam  :  This  head  includes  the  cost  of  fuel,  whether  coal  or  oil, 
used  under  the  boilers  for  electric  generation,  at  the  cost  delivered  in  the 
bunkers  or  tanks:  also  any  special  expen.se  incurred  in  disposing  of  ashes. 

Flel  for  Producer  Gas:  This  head  includes  the  cost  of  fuel  used  for 
generating  producer  gas. 

Note. —  No  portion  of  the  cost  of  boiler  room  labor  shall  be  charged  to  this 
accoant. 

E503.  Water  for  Power. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Water  for  Steam  Power  axd  Gas:  This  head  includes  the  cost  of  feed 
water  and  of  water  for  condensers;  also  the  cost  of  boiler  compound.  Water 
used  for  general  station  purposes  is  not  to  be  included. 

W.\TER  ix>B  Hydraulic  Power:  This  head  includes  the  cost  of  all  water 
purchased  for  the  purpose  of  operating  hydraulic  power  plants  in  the  electric 
department. 

.  E504.  Lubricants  fob  Poweb. 

Charge  to  this  account  the  cost  of  lubricants  for  machinery  in  the  gener- 
ating station;  but  not  oil  for  transformers,  grease  for  wagons,  or  oil  for 
lanterns. 

-E505.  Phoductiox  Sl-pplies  a2to  Station  Expense. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Production  Supplies:  This  head  includes  the  cost  of  all  supplies,  tools, 
etc..  used  in  the  generating  plant  which  are  consumed  in  the  operating  pro- 


36  Public  Service  Commission,  Secoxd  Disteict 

cess,  tlie  replacement  of  vvhicli  does  not  constitute  a  repair  or  renewal ;  also 
the  cost  of  repairs  of  such  tools.  This  covers  such  matters  as  waste,  pack- 
ing, wipers,  gauge  glasses,  gauge  washers,  manhole  gaskets,  handhole  gaskets, 
fire  room  tools,  steam  and  air  hose,  belts,  screws,  nails,  tools,  dynamo 
brushes,  etc. 

Station  Expense:  This  head  includes  the  general  and  miscellaneous  ex- 
penses in  the  generating  plant  not  specifically  chargeable  to  -other  accounts, 
including  such  matters  as  lighting,  heating,  and  cleaning  systems;  fire 
protection  system;  janitors'  supplies;  ice  and  water;  telephone  and  toilet 
services  at  station;   and  care  of  streets,  yards^,  and  sidings. 

E507.  Repaiks  of  Poweb  Plant  Buildings. 

Charge  to  this  account  the  coat  of  repairs  of  buildings  and  structures  used 
for  power  station  purposes;  cost  of  repairs  of  fixtures  therein;  cost  of  main- 
taining walks,  driveways,  and  grounds  connected  witii  such  buildings;  cost  of 
delivering  material,  including  freight  charges,  if  any;  and  all  incidental 
expenses  connected  with  the  maintenance  of  such  buildings  and  structures. 

The  term  "  buildings  and  structures,"  in  addition  to  embracing  the  build- 
ings proper,  shall  be  understood  to  include  fixtures  when  immovable  and 
built  in  as  a  part  of  the  structure;  permanent  foundations  and  piers;  pipes 
for  gas,  water,  sewerage,  and  drainage;  apparatus  for  heating,  lighting,  and 
ventilating;  freight  and  passenger  elevators  with  fixtures  and  appurtenances; 
platforms;  appliances  for  protecting  buildings  against  fires;  fences,  walls, 
sidewalks,  and  pavements  within  the  limits  of  grounds  immediately  adjacent 
to  such  buildings. 

Note. —  The  cost  of  replacement  of  a  building  or  structure,  when  In  excess  of 
$100,  shall  be  treated  through  the  appropriate  capital  account ;  when  less  than 
$100,  It  may  be  charged  directly  to  this  account  or  a  sub-account  hereunder. 

E508.  Repairs  of  Fiknaces,  Boili.us,  and  Accessories. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Repairs  of  Furnaces  and  Boilers:  This  head  includes  the  cost  of  re- 
pairing boilers  and  furnaces,  including  specially  provided  foundations  and 
settings,  iron  smokestacks,  and  such  matters  as  brick  work,  bridge  wall, 
arclies,  jambs,  grate  bars,  stoker  l>ars  and  webs,  furnaces,  valves,  superheat- 
ers, damper  regulators,  and  tubes. 

Repairs  of  Boiler  App.aratis:  This  head  includes  the  cost  of  repairing 
feed  water,  coal  and  ash  handling  systems,  and  auxiliary  apparatus  in  the 
fire  room ;  including  such  matters  as  feed  pumps,  blower  engines,  coal  con- 
veyor, digger,  troUej'  and  cable  tower,  crusher  and  belt  links,  brackets,  wheels, 
chutes  and  gates;  ash  conveyor  cars,  winches,  motors,  buckets,  shaft,  chain, 
and  wheels;  filters,  boiler  compound  injector  and  pump;  heaters,  primary 
and  secondarj';   economizers  and   water  meters. 

Repairs  of  Steam  Accessories:  This  liead  includes  the  cost  of  repairing 
the  piping  system  in  connection  with  the  making  of  steam  and  delivery 
thereof  to  the  prime  movers;  including  such  matters  as  water  feed  piping, 
cold  main,  hot  main,  water  nuction,  valves,  joints,  jackets,  ash  pit  drains  and 
ash  pocket  syphons,  oil  drains  from  engine  crank  pits,  receiving  tanks,  filter 
pumps  to  engine  valve,  steam  and  exhaust  line  systems,  sewer  connections, 
and  air  line. 


Accounts  fob  Electeical  Corporations      37 

£509.  Repaibs  of  Steam  Engines. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Repairs  of  Reciprocatikq  Engines:  This  head  includes  the  cost  of  re- 
pairing reciprocating  steam  engines  used  in  the  power  plant. 

Repairs  of  Steam  Turbines:  This  head  includes  the  cost  of  repairing 
steam  turbines  used  in  the  power  plant. 

Repairs  of  Other  Steam  Engine  Equipment:  This  head  includes  the 
cost  of  repairing  apparatus  auxiliary  to  the  prime  movers,  including  such 
matters  as  condensers,  packing  tubes,  renewing  tubes,  heads  and  doors,  and 
miscellaneous;  and  pumps,  air  and  circulating,  wet  vacuum,  dry  vacuum,  and 
oil  systems,  but  excluding  the  power  conveying  apparatus. 

E510.  Repairs  of  Hydraulic  Power  Plant. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Repairs  of  Dams,  Canals,  and  Pipe  Lines:  This  head  includes  the  cost 
of  repairing  hydraulic  structures.  Such  structures  include  dams,  embank- 
ments, etc.,  for  impounding  water,  and  all  appurtenant  gates,  valves,  weirs, 
wasteways,  canals,  conduits  and  other  channels  (including  riprap,  lining  walls, 
etc.),  pipe  lines,  aqueducts,  and  supporting  trestles,  etc.,  forebays  and  ap- 
purtenant sieves  and  grids,  wasteways,  etc.,  and  all  viaducts,  bridges,  foot- 
bridges, etc.,  over  and  accessory  to  or  necessitated  by  such  canals,  aqueducts, 
and  pipe  lines;  also  the  wasteways  conducting  water  from  the  outlet  of  the 
draft-tube  to  the  point  of  final  discharge. 

Repairs  of  Turbines  and  Water-wheels  :  This  head  includes  the  cost  of 
repairing  wheel-gates,  turbines,  and  other  hydraulic  apparatus  from  the  inlet 
valve  to  and  including  the  wheel  governor  and  to  the  outlet  of  the  draft-tube. 
E511.  Repairs  of  Gas  Power  Equipment. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Repairs  of  Gas  Producers  and  Accessories:    This  head  includes  the  cost 
of    repairing   apparatus    devoted    to   the   generation   of    producer    gas    to    be 
consumed  in  gas  engines  in  the  electric  generating  station;  also  the  cost  of 
repairing  gas  conductor  and  exhaust  pipes  and  other  auxiliary  gas  power  ap- 
paratus.    This  covers  producers,  economizers,  regenerators,  vaporizers,  steam 
injectors,  scrubbers,   exhauster  outfits,   seals,   specially  provided   boilers   and 
pumps,  flues  and  piping,  blower  engines,  holders,  etc.     Power  conveying  ap- 
paratus is  not  included  herein. 

Repairs  of  Gas  Engi>t:s:  This  head  includes  the  cost  of  repairing  gas 
engines  devoted  to  the  production  of  electric  energy,  including  inlet  valves, 
governors,  and  ignition  and  starting  apparatus. 

E512.  Repairs  of  Power  Plant  Electric  Equipment. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Repairs  of  Electric  Generators:     This  head  includes  the  cost  of  repair- 
ing dynamos,  alternators,  and  other  electric  generating  apparatus  driven  by 
steam,  water,  or  gas  power;  and  rotaries  and  motor  generating  sets,  exciters, 
etc.,  when  not  installed  in  connection  with  transmission  system. 

Repairs  of  Accessory  Electric  Equipjient:  This  head  includes  the  cost 
of  repairing  the  electric  generating  apparatus  not  includible  in  the  foregoing 
account.  This  covers  bus-bars,  regulators,  station  cables,  station  switchboards 
and  equipment,  such  as  circuit-breakers,  switches,  ammeters,  voltmeters,  watt- 
meters, etc.   (and  their  specially  provided  foundations  and  settings),  and  the 


38  iPuBLic  Service  Commission,  Second  District 

station  terminal  board ;  also  head-gate  motors,  pump  motors,  air  compressor 
motors,  etc.,  and  special  high-tension  transmission  equipment  at  power  sta- 
tions, such  as  high-tension  bus-bars,  high-tension  switchboards,  high-tension 
switches,  high-tension  current  transformers,  high-tension  lightning  arresters, 
high-tension  potential  transformers,  high-tension  reactive  coils,  high-tension 
choke  coils,  high-tension  grounding  devices  and  resistances,  high-tension  rais- 
ing and  lowering  transformers,  etc.,  but  not  wiring  for  lighting  the  station. 

E513.  MiscEixANEOUS  Station  Repairs. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Repairs  of  Station  Tools  and  Implements:  This  head  includes  the  cost 
of  repairing  station  tools  and  implements  that  have  been  capitalized  (except 
firo  tools,  elsewhere  provided  for).  Among  the  principal  items  in  this  ac- 
count are  blacksmiths',  machinists',  and  pipe  fitters'  tools,  pump  room  tools, 
engine  tools,  and  cutting  tools. 

Repairs  of  Miscellaneous  Station  Equipment:  This  head  includes  the 
cost  of  repairing  station  apparatus  not  includible  in  the  foregoing  repair 
accounts,  particularly  the  power  transmission  equipment,  such  as  shafting, 
belting,  and  clutches;  motors,  hoists,  and  cranes,  etc. 

E514.  Steam  from  Other  Sources. 

Charge  to  this  account  the  cost  of  all  purchased  or  jointly  produced  steam 
consumed  in  the  power  plant  of  the  electric  department. 

Note. —  In  case  such  steam  is  jointly  produced,  i.  e.,  produced  by  another  person 
or  corporation  under  a  joint  arrangement  for  sharing  the  cost  of  production  in  pro- 
portion to  the  benefits  to  the  several  participants,  the  charge  to  this  account  may 
include  a  proportion  to  cover  depreciation  of  plant  employed  as  well  as  the  propor- 
tion of  direct  expense,  but  it  must  not  include  any  allowance  or  return  upon  the 
cost  or  value  of  the  plant.  Such  allowance  or  return  upon  property  must  be 
charged  to  account  No.  922f,  "  Other  Rent  Deductions  ".     (See  page  53.) 

E5J5.  Power  Ga^  from  Other  Sources. 

Charge  to  this  account  the  cost  of  all  gas  consumed  in  the  gas  power  plants 
of  electric  generating  stations,  but  not  produced  in  the  electric  department; 
this  includes  the  cost  of  gas  produced  for  the  corporation  by  another  corpo- 
ration under  any  joint  arrangement  for  the  sharing  of  expense  (upon  the 
basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  in- 
clusive of  provision  in  such  expense  for  depreciation  of  plant,  but  exclusive 
of  allowance  for  profit  or  return  upon  the  value  of  property  used  in  such 
production. 

E516.  Electric  Energy  from  Other  Sources. 

Charge  to  this  account  the  cost,  at  the  point  of  delivery  to  the  corporation, 
of  all  electric  energy  purchased  or  produced  for  the  corporation  by  another 
corporation  under  any  joint  arrangement  for  the  sharing  of  expense  (upon  the 
basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  inclusive 
of  provision  in  such  expense  for  depreciation  of  plant,  but  exclusive  of  allow- 
ance for  profit  or  return  upon  the  value  of  property  used  in  such  production. 

n.  TRANSMISSION  EXPENSES. 
E521a.  Transmission  Subway  Rent. 
Charge  to  this  account  the  rents  payable  accruing  for  ducts  leased  from 
•ther  corporations  or  from  a  municipal  corporation. 

Note. —  In  case  the  rented  subway  is  used  for  distribution  as  well  as  for  trans- 
mlBSion,  the  rent  should  be  apportioned  between  this  account  and  account  No.  E521b, 
"  Distribution  Subway  R«nt  ". 


AccoL'XTs  ¥OB,  Electeical  Cokporatioxs  39 

E522a.  Tbaxsmissiox  Pole  axd  Fixture  Repaibs. 

Charge  to  this  account  the  cost  of  repairing  and  renewing  poles,  cross-arma, 
and  insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  guys  and  other 
supports  for  holding  the  poles,  towers,  and  other  structures  in  position;  also 
repairs  of  towers  and  other  structures  maintained  primarily  for  supporting 
the  overhead  transmission  system. 

This  account  does  not  include  insulators. 

Note  A. —  The  cost  of  repairing  and  renewing  poles  and  fixtures  which  carry  both 
transmission  and  distribution  condactors  should  be  apportioned  between  this  ae- 
connt  and  accoont  Xo.  &>22b.  "  Distribution  Pole  and  Fixture  Repairs  ". 

Note  B. —  The  cost  of  replacement  of  towers  and  otber  stmctures  maintained 
primarily  for  supporting  the  overhead  electric  construction  shall,  when  the  In- 
dividaal  costs  of  the  same  equal  or  exceed  $100,  be  treated  through  the  appropriate 
capital  accounts.  When  the  individual  cost  is  less  than  $100,  the  replacement  may 
be  charged  directly  to  this  account. 

£523a.  Tbaxsmissiox  UxDEBGBOxr;n)  Cosdcit  Kepaibs. 

Charge  to  this  account  the  cost  of  patrolling  and  inspecting  as  well  as 
repairing  transmission  underground  conduits,  including  renewing  ducts  and 
pipes,  enlarging  and  repairing  manholes,  re-paving  streets  over  such  structures, 
etc  This  account  does  not  include  any  repairs  of  conductors  or  of  the  in- 
solation there<rf. 

Note. —  The  cost  of  maintaining  underground  conduits  which  carry  both  trans- 
mission and  distribution  conductors  should  be  apportioned  between  this  account 
and  account  Xo.  E323b,  "  Distribution  Underground  Conduit  Repairs  *'. 

Eo24.  Tbaxsmissiox  System  Repairs. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Overhead  Transmission  System  Repairs:  This  head  includes  the  cost 
of  repairing  and  maintaining  overhead  trunk  lines  between  generating  and 
sub-stations,  including  patrolling  and  testing,  and  all  repairs. 

UXDEBGBOUXD  TRANSMISSION  SYSTEM  REPAIRS:  This  head  includes  the 
cost  of  inspecting  and  repairing  underground  transmission  cables. 

Note  A. —  This  account  does  not  Include  the  cost  of  repairing  poles  and  fixtures, 
for  which  see  account  Xo.  E522a.  "  Transmission  Pole  and  Fixture  Repairs  ". 

Note  B. —  VThen  the  electric  current  generated  (or  received  from  another  corpo- 
ration) is  conducted,  either  at  the  voltage  of  generation  (or  receipt)  or  at  a 
higher  voltage,  to  a  point  where  it  Is  (a)  lowered  In  voltage  by  means  of  step- 
down  transformers,  or  changed  as  to  kind  or  frequency  by  means  of  (b>  motor 
generator  sets,  (c)  rotary  converters,  or  (d)  frequency  changers,  that  portion  of 
the  outside  line  or  conductor  system  antecedent  to  the  said  stepdown  trans- 
formers, motor  generator  ~  sets,  rotary  converters,  or  frequency  changers,  shall 
be  classed  as  the  Transmission  System ;  ertxpt.  however,  that  primary  wiring  In 
lighting  systems  at  not  to  exceed  4,400  volts,  4-wIre,  3-phase.  shall  be  classed  as 
a  part  of  the  Distribution  System.  Tie-lines  between  generating  stations  and 
sub-stations  shall  follow  the  same  rule.  Line  transformers  are  not  Included 
among  the  "  stepdown   transformers  "  above  mentioned. 

E525.  Sub-station  Labor. 
Charge  to  this  account  the  cost  of  all  labor  employed  in  superintending  and 
operating  sub-stations,  including  not  only  that  of  regulators,  brushmen,  and 
others  engaged  in  operating  the  electric  apparatus,  but  also  that  of  clerks, 
janitors,  watchmen,  etc. 

E526.  Sc^-STATioir  Supplies  and  Expenses. 
Charge  to  this  account  the  cost  of  supplies  consumed  and  expenses  incurred 
in  connection  with  the  operation  of  sub-stations,  such  as  telephone  rents,  light, 
hea^  etc 


40         Public  Service  Commission,  Second  District 

E527.    Repaibs  of  Sub-station  Botldings. 
Charge  to  this  account  the  cost  of  repairing  sub-station  buildings  and  per- 
manent fixtures  therein,  including  grounds  and  adjacent  streets,  vaults,  sheds, 
pits,  sidewalks,  etc. 

E528.  Repairs  of  SuB-STATiosf  Equipment. 
Charge  to  this  account  the  cost  of  repairing  apparatus  in  sub-stations,  in- 
cluding  sub-station   cables,    switchboards  and   instruments,    station  terminal 
board,  etc. 

Note. —  This  account  should  not  Include  the  cost  of  repairing  any  storage  battery 
equipment,  for  which  see  account  No.  E529,  "  Electric  Storage  Expenses,"  under  the  head 
of  "Repairs  of  Storage  Battery  Accessories  ". 

III.  ELECTRIC   STORAGE    EXPENSES. 

E529.  Electeic  Storage  Expenses. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Storage  Battf.by  Labor:  This  head  includes  the  salaries  and  personal  ex- 
penses of  superintendent,  clerks,  and  batterymen,  including  inspectors  and 
testers. 

Storage  Battery  Supplies:  This  head  int-ludes  the- cost  of  acid  and  dis- 
tilled water  in  cells,  soda,  sponges,  brooms,  mops,  waste,  rags,  hydrometers, 
thermometers,  automatic  cell  fillers,  rubber  hose,  gloves,  shoes,  paint,  etc., 
and  brushes  for  boosters  and  compensators. 

Storage  Battery  Renewals:  This  head  includes  the  cost  of  renewing 
worn-out  cells,  including  diaphragms,  negative  and  positive  plates,  lead  in 
strip,  spelter,  pails,  candles,  dry  boards,  tank  bands,  sheet  lead,  glass  plates, 
glass  covers,  hydrogen  generators,  jumpers,  clamps,  lampblack,  etc. 

Repairs  of  Storage  Battery  Accessories:  This  head  includes  the  cost  of 
repairing  tanks,  battery  room  flooi*,  switches,  regulating  apparatus,  boosters, 
and  compensators. 

IV.  DISTRIBUTION  EXPENSES. 
E531.  Electric  Distribution  Superintendence. 

Charge  to  this  account  the  salaries  and  personal  expenses  of  superintendents 
and  clerks,  and  also  that  portion  of  the  salaries  of  the  engineering  staff 
of  the  company  which  is  assignable  to  distribution. 

E532.  Electric  Distribution  Records  and  Office  Expense. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Electric  Distribution  Maps  and  Records:  This  head  includes  the  cost 
of  maps  and  records  of  overhead  and  underground  lines,  including  salaries 
and  personal  expenses  of  mappers  and  draftsmen,  cost  of  drawing  material, 
etc. 

Electric  Distribution  Office  Expense:  This  head  includes  the  cost  of 
all  other  supplies  and  expenses  of  the  office  of  the  superintendent  of  the 
distribution  department. 

E533.  Setting  and  Removing  Meters  and  Transformers. 

Charge  to  this  account  the  cost  of  all  supplies  consumed  and  all  expenses 
incurred  in  connection  with  the  operation  of  service  transformers  and  coo- 
flumers'  meters.  This  includes  such  matters  as  setting  and  removing  such 
transformers  and  meters,  connecting  and  disconnecting  services,  and  the  like. 


Accounts  fok  Electrical  Corporations      41 

Note. —  In  case  It  is  the  policy  of  the  accounting  corporation  to  charge  the  cost 
of  the  first  setting  of  consumers'  meters  to  capital,  such  charge  should  be  made  to 
account  Xo.  E167b,  "  Electric  Meter  Installation  ". 

E521b.  DiSTBiBUTiox  Subway  Re:?t. 

Charge  to  this  account  the  rents  payable  accruing  for  underground  con- 
duits used  for  distribution  conductors. 

Note. —  In  case  the  rented  subway  is  used  for  transmission  as  well  as  for  dis- 
tribution, the  rent  should  be  apportioned  between  this  account  and  account  No. 
E521a,    "  Transmission    Subway    Rent  ". 

E522b.  DiSTBiBXjTiox  Pole  axd  Fixtdbe  Repaibs. 

Charge  to  this  account  the  cost  of  repairing  and  renewing  poles,  cross- 
arms,  and  insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  guys  and 
other  supports  for  holding  the  poles,  towers,  and  other  structures  in  position; 
also  repairs  of  towers  and  other  structures  maintained  primarily  for  support- 
ing the  OTcrhead  distribution  system. 

This  account  does  not  include  insulators. 

Note  A. —  The  cost  of  repairing  poles  and  fixtures  that  carry  both  transmission 
and  distribution  conductors  should  be  apportioned  between  this  account  and  account 
No.  E522a,  "  Transmission  Pole  and  Fixture  Repairs  ". 

Note  B. —  The  cost  of  replacement  of  towers  and  other  structures  maintained 
primarily  for  supporting^ the  orerhead  electric  construction  shall,  when  the  Indi- 
vidual costs  of  the  same  equal  or  exceed  $100,  be  treated  through  the  appropriate 
capital  accounts.  VTben  the  Individual  cost  is  less  than  $100,  the  replacement 
may  be  charged  directly  to  this  account. 

E523b.  DisTBiBtmoN  UM)EBGBOujn)  Conduit  Repaibs. 

Charge  to  this  account  the  cost  of  maintaining  subways  and  underground 
conduits,  including  repairs  of  the  tube,  of  manholes,  of  paving  over  such 
subways  and  of  all  ducts  and  conduits,  but  not  any  repairs  of  conductors  or 
of  the  insulation  thereof. 

Note. —  The    cost   of   maintaining    (including   patrolling   and   Inspecting)    under- 
ground conduits  and  subways  which  carry  both  transmission  and  distribution  con- 
ductors should  be  apportioned  between  this  account  and  account  No.  E523a,  "  Trans- - 
mission    Underground   Conduit   Repairs ". 

E534.  DiSTMBUTiox  System  Repaibs. 

Charge  to  this  account  all  matters  provided  for  imder  the  following  heads: 

OvEBHE.\D  DiSTBiBUTiON  SYSTEM  Repaibs  :  This  head  includes  the  cost  of 
patrolling,  testing,  and  repairing  the  overhead  conductors  in  the  distribution 
system. 

Edison  Tube  System  Repaibs  :  This  head  includes  the  cost  of  inspecting, 
testing,  and  repairing  the  Edison  tube  system,  including  junction  boxes, 
tubing  and  conductors,  coupling  boxes,  etc. 

Otueb  Usdebgbouxd  DISTBIBUTIOX  System  Repaibs:  This  head  includes 
the  salaries  and  expenses  of  patrolmen,  testers,  etc.,  as  well  as  the  cost  of 
repairing  damaged  subway  distribution  conductors. 

E535a.  Repaibs  of  Electbic  Sebvices. 
Charge   to  this  account  the  cost  of  repairing  underground  and   overhead 
services  leading  from  the  mains  to  the  consumers'  premises. 
E535b.  Repaibs  of  Tbaxsfobmebs. 
Charge  to  this  account  the  cost  of  labor  and  material  consumed  in  main- 
taining transformers,  including  renewing  oil,  re-painting,  re-winding,  removal 
and  replacing;  also  repairs  of  such  switches  and  cut-outs  as  are  the  property 
of  the  corporation  on  consumers'  premises. 


42  Public  Service  Commission,  Second  District 

E536.  Klectkic  Metkr  Operation'  and  Repairs. 
Charge  to  this  account  all  matters  ])rovi(lecl' for  under  the  following  heads: 
Electric  ;Meter  Operation  :  This  head  includes  the  salaries  and  expenses 
of  superintendents  and  clerks  in  the  meter  bureau,  and  also  that  portion  of 
the  salaries  of  the  engineering  staff  of  the  corporation  assignable  to  this 
account;  also  the  cost  of  light,  heat,  ice,  water,  and  other  supplies  and  ex- 
penses in  connection  with  the  naeter-testing  bureau ;  and  the  cost  of  testing 
meters  on  consumers'  premises  or  in  meter  shops. 

Electric  Meter  Repairs:  This  head  includes  the  cost  of  repairing  meters 
in  the  distribution  service,  including  new  i>arts,  new  jewels,  cleaning,  and 
painting. 

V.  UTILIZATION  EXPENSES. 

541.  Commercial  Arc  Operation. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Commekcial  Arc  Labor:     This  head  includes  the  cost  of  labor  employed 

in  trimming  and   inspecting  arc   lamps   on  private   consumers'   premises   and 

in  niunicipal  buildings. 

Commercial  Arc  Supplies:     This  head  includes  the  cost  of  all  supplies 

(such  as  carbons,  globes,  etc.)    for  arc  lamps  on  private  consumers'  premises 

and  in  municipal  buildings. 

542.  Commercial  Arc  Repairs. 
Charge  to  this  account  the  cost  of  keeping  in  repair  private  consumers'  arc 
lamps  and   those  in  municipal  buildings;   including  such  matters  as  setting 
and  removing  lamps,  repairing  parts,  changing  for  repairs  and  adjustment, 
and  testing  during  adjustment  and  after  repairs. 

543.  Commercial  Incandescent  Operation. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Commercial  Incandescent  Installation:  This  head  includes  the  cost  of 
the  first  installation  of  incandescent  lamps  on  consumers'  premises  (includ- 
ing cartage  and  delivery  exjjenses)  unless  consumer  is  charged  for  the  first 
installation,  or  unless  it  is  proper  to  charge  such  first  installation  to  capital. 
(See  account  No.  EJ73,  "Glower  Lamps,"  page  16.) 

Commercial  Incandescent  Rene\vals:  This  head  includes  the  cost  of 
renewing  incandescent  lamps  on  consumers'  premises  (including  cartage  and 
delivei-y  expense)  and  cost  of  photometering  incandescent  lamps.  Credit  to 
this  account  under  this  head  any  rebate  received  for  the  return  of  stubs,  or 
allowances  relating  thereto. 

544.  Consumers'  Instaixation  Expenses. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Inspection  of  Consumers'  Premises:  This  head  includes  the  cost  of  in- 
spection of  consumers'  premises,  including  such  matters  as  the  charge  for 
municipal  certificates,  charge  for  Board  of  Fire  Underwriters'  Inspection, 
certificates,  and  that  portion  of  the  salaries  and  expenses  of  the  engineering 
staflf  or  of  other  departments  than  the  distribution  department  engaged  in 
technical   work  properly  assignable  to  this  account. 

Repairs  of  Consumi-his'  Installations:  This  head  includes  the  cost  of 
all  labor  and  material  furnished  to  consumers  for  inside  work  without  special 
charge,  including  such  matters  as  attention  to  complaints  or  to  improving 


Accounts  fob  Electrical  Cokporatioxs      43 

the  character  of  service,  r?placing  or  repairing  wiring  fixtures  or  electric 
appliances,  moving  appliances  Irom  place  to  place  in  houses  and  re-connect- 
ing the  san:e,  etc. 

545.  Municipal  Street  Arc  Operation. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
MrxiciPAL  Street  Arc  Labor:     This  head  includes  the  cost  of  labor  em- 
ployed  in  trimming  and   inspecting  the   arc   lamps   of  the   municipal   street 
lighting  system. 

ilcMCiPAL  Street  Arc  Supplies:  This  head  includes  the  cost  of  carbons, 
globes,  etc.,  for  the  arc  lamps  of  the  municipal  street  lighting  system. 

546.  Municipal  Street  Arc  Repairs. 
Charge  to  this  account  the  cost  of  changing  location  of  lamp  posts,  chang- 
ing  lamps    for   repairs   and    adjustments,   renewals,    repairs   of   mast   arms, 
hangers,  poles,  ropes,  etc.,  and  painting  poles;   also  that  portion  of  the  arc 
lamp  shop   expense   assignable   thereto. 

547.  Municipal  Street  Incandescent  Operation. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Municipal  Street  Incandescent  Installation:  This  head  includes  the 
cost  of  the  first  installation  of  incandescent  lamps  in  the  municipal  street 
lighting  system,  unless  it  is  paid  by  the  municipal  corporation,  or  the  lamps 
are  of  such  character  that  it  is  proper  to  charge  to  capital.  (See  account 
No.  E173,  "'Glower  Lamps."'  page  16.) 

Municipal  Street  Incandescent  Renewals:  This  bead  includes  the  cost 
of  renewing  incandescent  lamps  in  the  municipal  street  lighting  system. 

548.  Municipal  Streett  Incandescent  Repairs. 

Charge  to  this  account  the  cost  of  repairing  municipal  incandescent  street 
lamps  and  fixtures. 

Note. —  This  does  not  Include  Items  chargeable  to  maintenance  of  poles  and 
their  fixtures,  or  of  subways,  or  conductors. 

VI.  COMMERCIAL  EXPENSES. 
E551.  Commercial  Administration  —  Electric. 
Charge  to  this  account  the  matters  prescribed  under  the  following  heads: 

a.  Commercial  Department  Indexing:  This  covers  the  cost  of  indexing 
meters,  including  indexers'  lamps. 

b.  Commercial  Department  Collecting :  This  covers  the  expense  of  the  col- 
lection bureau,  including  collectors'  salaries  or  commissions,  badges,  car 
fares,  and  delivering  bills. 

c.  Commercial  Department  Contracts:  This  covers  such  part  of  the  cost 
of  the  contract  department  as  is  not  assignable  to  the  Promotion  Office,  in- 
cluding attention  to  bill   questions. 

d.  Commercial  Department  Accounting :  This  covers  the  cost  of  keeping 
the  accounts  of  consumers,  being  a  proportion  of  the  salaries  and  expenses 
of  general  officer  and  assistants  in  charge  of  the  commercial  department, 
and  salaries  of  bookkeepers  and  all  clerks  in  the  accounting  department 
having  to  do  with  consumers'  accounts. 

€.  Commercial  Department  Miscellaneous:  This  covers  all  expenses  in- 
curred in  selling  electric  power  and  products,  in  determining  the  amount 
of  su<ih  sales,   in  making  collections,  and  in  keeping  account  of  such  sales 


44         Public  Service  Commission,  Second  District 

and  collections  aa  are  not  includible  in  the  accounts  of  the  indexing,  account- 
ing, collection,  and  contract  divisions,  or  in  the  following  accounts  for  pro- 
motion expenses. 

EC552.  Pbomotion  Expenses  —  Eiectbic. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Promotion   Office   Expense  —  Electric:      This   head   covers  — 

a.  Promotion  Management :  The  cost  of  administration  of  the  department 
maintained  for  tha  promotion  or  development  of  electric  consumption,  in- 
cluding that  portion  of  the  salaries  and  expenses  of  management  and  clerks 
ill  agency  and  contract  departments  assignable  to  new  business. 

b.  Demonstrations :  The  cost  of  labor  expanded  and  expenses  incurred  in 
demonstrating  the  use  of  electric  lamps  and  appliances  for  the  purpose  of 
obtaining  new  business. 

c.  Other  Promotion  Office  Expense:  The  office  expenses  of  the  promotion  or 
new  business  department. 

Advertising  —  Electric:     This  head  covers  — 

a.  Advertising  Salaries  and  Expenses:  The  salaries  and  personal  expenses 
of  the  advertising  manager  and  clerks. 

b.  Advertising  Sundries:  The  cost  of  commercial  advertising  sundries,  in- 
cluding booklets,  dodgers,  newspaper  advertisements,  posters,  bulletins,  and 
all  related  items. 

Canvassing  and  Soliciting — Electric:  This  head  includes  all  expenses 
incurred  in  soliciting  new  business,  including  wages,  commissions,  and  per- 
sonal expenses  of  canvassers,  cost  of  preparing  estimates,  engineering  advice 
on  wiring,  etc.,  and  office  sundries  in  connection  therewith. 

Promotion  Wiring  and  Devices  :     This  head  covers  — 

a.  Promotion  Wiring:  The  cost  of  wiring  in  consumers'  premises  furnished 
without  special  charge  in  order  to  induce  new  business. 

b.  Promotion  Signs  and  Devices:  The  cost  of  electric  signs  and  other 
devices  (including  delivery  and  connection  charges,  and  expenses  in  con- 
nection therewith)  supplied  to  consumers  without  special  charge  in  order  to 
-develop  new  business. 

VII.     GENERAL  MISCELLANEOUS  EXPENSES. 
E832.  General  Officers  and  General  Office  Clerks. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Salaries  and  Expenses  of  General  Officers:  This  head  includes  the 
salaries  and  traveling  and  incidental  expenses  of  the  chairman  of  the  board, 
president,  vice-president,  treasurer,  secretary,  comptroller,  general  auditor, 
general  manager,  assistant  general  manager,  chief  engineer,  general  superin- 
tendent, purchasing  agent,  and  all  other  officers  whose  jurisdiction  extends 
to  the  entire  system  and  wliosc  services  can  not  be  satisfactorily  allocated 
to  the  several  departments;  also  fees,  salaries,  and  expenses  of  receivers. 

Salaries  and  Expenses  of  General  Office  Clerks:  This  head  includes 
the  salaries  and  traveling  and  incidental  expenses  of  general  office  auditors, 
bookkeepers,  cashiers,  paymasters,  stenographers,  clerks  employed  in  counting 
cash,  and  all  other  clerks  employed  in  the  general  office. 

Note. —  CoBt  of  labor  pf  clerks   In   the  commercial   department  shall  be  charged 
to  account  No.  E551,  "Commercial  Administration  —  Electric".     (See  page  43.) 
E835.  General  Office  Supplies  and  Expenses. 

Charge  to  this  account  the  cost  of  office  supplies,  repairs  of  office  furniture, 
and  renewals  of  sueh  furniture  as  has  not  been  capitalized;  wages  of  jani- 


AccouHTS  poB  Electkical  Cobpoeatioss      45 

tors,  porters,  and  messengers;  rent  of  rooms  in  office  buildings,  repairs  of 
snch  rented  rooms,  and  all  other  miscellaneous  expenses  of  general  offices. 
OflSce  expenses  of  departmental  officers  must  be  charged  to  the  proper  depart- 
mental accounts. 

Note. —  Bents  charged  to  this  account  will  be  required  to  be  reported  separately. 
E336.  General  Law  Expenses. 
-  Charge  to  this  account  all  law  expenses  except  those  incurred  in  the  de- 
fense and  settlement  of  damage  claims.  This  includes  salaries  and  expenses 
of  all  counsel,  solicitors,  and  attorneys,  their  clerks  and  attendants,  and 
expenses  of  their  offices;  cost  of  law  books,  printing  briefs,  legal  forms, 
testimony,  reports,  etc.;  fees  and  retainers  for  services  of  attorneys  not  r^u- 
lar  employees;  court  costs  and  payments  of  .special,  notarial,  and  witness 
fees  not  provided  for  elsewhere;  expenses  connected  with  taking  depositions, 
and  all  law  and  court  expenses  not  provided  for  elsewhere. 

Note. —  The  compensation  of  the  general  solicitor  or  counsel  or  other  attorneys 
engaged  partly  in  the  defense  or  settlemoit  of  damage  suits  and  partly  In  oth^ 
legal  work,  should  be  properly  apportioned  between  this  accoont  and  account 
No.   ES47b,  "  Law   Expenses  Connected  with   Damages ". 

ES37.  MiscEiXAyeous  Gexebal  Expexses. 

Charge  to  this  account  the  cost  of  telephone  service,  telegrams,  and  other 
miscellaneous  expenses  (including  all  expense  specially  incurred  in  connection 
with  the  utilization  and  sale  of  byproducts,  such  as  battery  and  other  cbem- 
ieal  waste,  etc)  connected  with  the  general  management  not  otherwise  pro- 
Tided  for. 

E83S.  IxsxntAscac 

Charge  to  this  account  premiums  paid  to  insurance  companies  for  fire, 
fidelity,  boiler,  casualty,  burglar,  and  all  other  insurance;  also  amounts  set 
aside  as  an  insurance  reserve. 

Note. —  In  their  reports  to  the  Public  Service  Commission  corporations  will  be  re- 
quired to  report  the  charges  made  to  this  account  for  the  various  kinds  of  Insur- 
ance, and  for  self-insurance. 

E839.  Relief  Depabtmext  axd  Pexsioxs. 

Change  to  this  account  all  matters  provided  for  under  the  following  heads: 

Relief  Depabtmest  Expenses:  This  head  includes  all  salaries  and  ex- 
penses incurred  in  connection  with  conducting  a  relief  department;  also  con- 
tributions made  to  such  department. 

Peksioxs:  This  iiead  includes  all  pensions  paid  to  retired  employees,  and 
expenses  in  connection  therewith. 

E340.  Electkic  Fraxchise   Reqctremkxts. 

Charge  to  this  account  the  cost  of  all  energy  and  materials  and  supplies 
furnished  to  municipal  corporations  in  compliance  with  franchise  require- 
ments and  for  which  no  payment  is  received  by  the  corporation;  also  of  all 
direct  expense,  such  as  paving  and  other  like  matters,  incurred  in  compliance 
with  such  requirements  and  for  which  no  reimbursement  is  received  by  the 
corporation.  Amounts  charged  to  this  account  for  which  there  is  no  direct 
money  outlay  shall  be  credited  to  the  below  provided  account.  No.  ES53, 
"Duplicate  Electric  Charges  —  Cr."     (See  page  48.) 

E842.  Gexeral  Amobtiz.^tiox  —  Electbic. 

Charge  to  this  account  month  by  month  the  amount  estimated  to  be  neces- 
sary to  eover  such  wear  and  tear  and  obsolescence  and  inadequacy  as  have 


-46  Public  Service  Commission,  Second  District 

accrued  during  the  month  in  the  tangible  electric  capital  of  the  corporation, 
such  portion  of  the  life  of  intangible  fixed  capital  as  has  expired  or  been 
consumed  during  the  month,  and  the  amount  estimated  to  be  necessary  to 
provide  a  reserve  to  cover  the  cost  of  property  destroyed  by  extraordinary 
casualties;  less  the  amounts  charged  for  that  month  to  the  various  repair 
accounts  in  Electric  Operating  Expenses.  The  amount  charged  (or  credited) 
to  this  account  shall  be  concurrently  credited  (or  charged)  to  the  reserve 
account  No.  374,  "Accrued  Amortization  of  Capital",      (See  page  27.) 

Note  A. —  Until  otherwise  ordered,  the  "  amount  estimated  to  be  necessary  to 
cover  such  wear  and  tear  and  obsolescence  and  Inadequacy  as  have  accrued  dur- 
ing "  any  month  shall  be  based  on  a  rule  determined  by  the  accounting  corporation. 
Such  rule  may  be  derived  from  a  consideration  of  the  said  corporation's  history 
and  experience  during  the  preceding  five  years,  and  the  accrual  may  be  on  the 
basis  of  kilowatt-hours  sold.  Amortization  of  Intangible  capital  shall  likewise  be 
based  on  rule.  Whatever  may  be  Its  basis,  such  rules  and  a  sworn  statement  of 
the  facts  and  expert  opinions  and  estimates  upon  which  they  are  based  shall  be 
filed  with  the  Public  Service  Commission  on  or  before  January  1,  1909;  each 
amendment  of  any  such  rule  and  a  sworn  statement  of  the  facts  and  expert  opinions 
and  estimates  upon  which  such  amendment  is  based  shall  be  filed  with  the  Public 
Service  Commission  before  it  is  used  by  the  accounting  corporation,  and  shall  show 
the  date  when  It  Is  to  be  effective.  Such  rules  and  statements  shall  be  filed  upon 
sheets  9%  Inches  by  12  inches  and  shall  be  entitled  "  Rule  of  the  (here  naming 
the  accounting  corporation)    concerning  Amortization  of   Capital  ". 

Note  B. —  When  any  capital  Is  retired  from  service,  the  amount  (estimated  if 
not  known)  originally  charged  to  a  capital  account  in  respect  thereof  shall  be 
credited  to  such  capital  account,  and  (except  as  provided  in  account  No.  ElOO, 
"  Fixed  Capital,  December  31,  1908,")  the  original  money  cost  of  such  capital,  less 
salvage,  if  any,  shall  be  charged  to  the  reserve  account,  "Accrued  Amortization  of 
Capital,"  any  necessary  adjusting  entry  being  made  in  the  proper  account  under 
"  Corporate  Surplus  or  Deficit ".  Where  capital  Is  substantially  continuous  and 
can  not  be  satisfactorily  individualized,  it  shall  be  kept  In  eflSclent  operating  con- 
dition through  repair,  and  the  renewals  and  replacements  of  parts  thereof  shall  be 
considered  repairs.  In  the  case  of  buildings,  towers,  bridges,  trestles,  and  other 
separate  structures  capable  of  being  readily  individualized,  charges  to  this  account 
must  be  suflBcient  to  provide  (in  respect  of  such  capital  and  except  as  provided  In 
account  No.  ElOO,  "  Fixed  Capital,  December  31,  1908,")  In  the  account  "Accrued 
Amortization  of  Capital  "  by  the  time  such  structures  go  out  of  service  a  reserve 
equal  to  the  original  money  cost  thereof,  less  salvage,  to  which  account  such 
original  cost,  less  salvage,  shall  be  charged. 

E845.  Electric  Expenses  Transferred  —  Cr. 

Credit  to  this  account  the  proportion  of  operating  expenses  (including 
depreciation  and  other  amortization  as  well  as  repairs)  chargeable  to  other 
ooSrdinate  departments  (such  as  gas  or  street  railroad)  within  the  same 
corporation,  but  defrayed  in  the  first  instance  by  the  electric  department. 

NoTK. —  Do  not  credit  to  this  account  any  allowance  In  the  nature  of  rent  or 
return  upon   the  cost  or  value  of  property. 

ES4G.  Joint  Operating  Expense  —  Cr. 

When  any  plant  or  equipment  is  maintained  or  operated  by  the  accounting 
corporation  for  the  joint  benefit  of  itself  and  others  under  an  arrangement 
for  apportioning  (on  the  basis  of  the  relative  amounts  of  benefit  to  the 
several  participants)  the  operating  expenses,  the  portion  of  such  expenses 
chargeable  to  others  under  the  arrangement  shall  be  credited  to  this  account. 
The  portion  so  credited  must  not  include  any  allowance  for  profit  or  return 
upon  the  value  of  such  proiperly. 

Note  A. —  The  foregoing  should  be  read  in  connection  with  the  definition  of 
revenue  account  No.  425,  "Joint  Electric  Rent  Revenue".     (See  page  33.) 


Accounts  tu&  Euectkicai.  Corporations  47 

Rms  B. —  la  the  cmse  of  Oe  pmdBcttaB  «(  power  part  of  wlikk  Is  »— — #^.f^ 
to  UMtker.  if  tbe  uiwmmgBmemt  aBder  vUck  aaek  pgodttioM  oeems  doe*  aot  proTMe 
for  the  apportkwaeat  at  exptaai*,  the  cattic  mmtammt  chained  for  the  portioB  ap- 
plied is  to  be  ocAted  to  the  mtfmttdatt  rereaae  Mcoaat  euieilag  the  aalo  of 
power.     (See  accoots  Xoa.  404,  497.  409.  41«.  and  411.  page  32.) 

ES47a.  AcciDEXis  a31>  Davacbs. 
Ghaige  to  th»  aceoofc  all  exptwsa  {otker  than  lav  mrpfmrnn  pnmded  for 
im  tibe  niiffccdin^,  aceomt)  en  aeeomt  of  peraoss  kiDed  or  injincd  and 
fropatj  dmmMged  in  eomMctkn  with  the  <iperatiaB  of  the  plaBt,  as  enmer- 
ated  onda-  the  follovuig  beads,  which  must  be  separatri^  ^hown  in  amnal 
rspcnlB  to  the  Pablie  Service  ComnussioD: 

a.  CImim  Defurtwtent  Expetue:  This  head  inchidea  aalaxica  and  expenses 
of  claim  agenta,  inrestigators,  adjufata,  aad  others  cagsged  im  tte  iavesti- 
gatioB  of  acejdeats  and  ad jnsfancnt  of  claims. 

b.  Medieml  Expenses:  This  head  inehides  salaries,  fees,  and  expoiaes  ni 
wugeuns  and  docton;  norsipg^  ho^ital  attmdance^  mrdical  and  saxjpcal 
sap|dies;  fees  and  expe&aes  of  cwonas  and  nndertakeis;  and  coBtribotioBS 
to  ho^itals. 

c  Injuries  to  EmpUnfees:  This  bead  includes  amoonts  paid  in  aetUe- 
■MBBt  ol  dains  of  anployees  for  injories  arisiqg  in  the  eomae  of  their  em- 
ployment; also  wages  paid  to  disabled  em^ojees  while  off  dnty. 

d.  Other  Persomal  Injuries  mwl  Propertjf  Damu^:  This  head  includes 
m^'frnnim  pud  in  Settlement  of  claims  of  persons  othr  than  coplojccs  fox- 
personal  injuries  sustained  in  eooneetaon  with  the  ~<qiamtkm  of  the  ^ant; 
also  amounts  p«ud  in  settlement  of  claims  for  damage  to  pxt^erty  not  owned 
by  the  accounting  corpovatioa. 

e.  Other  Accident  Erpenses. 

Xoia. —  U  It  is  desired  that  the  chaise  to  opaaUBK  fTpcaw^  on  account  of  in- 
Jarieo  and  di»mi  Aall  he  npam  some  arhitiarjr  taxis,  the  asMiaat  so  cfeareed  shaD 
be  uedited  to  aceuaat  Nol  381.  **  Cssaalties  and  lasBianee  Bcame."  and  the  aetaal 
dliiiai  SI  III!  Bts  abore  canainstcd  Aall  be  ^aiged  sgafasf  sach  icaure  aceooat. 

E:S47b.  Law  Ejlpesims  Cosxected  with  Damages. 

Charge  to  this  account  all  law  expenses  in  eoBneetkm  with  the  defense  or 
settlement  of  damage  claims,  inrlndii^ — 

a.  Smimries  and  Expenses  of  Attomejfs:  A  proper  proportion  of  the 
salary  aad  expenses  of  the  gmeral  solicitor  or  counsel,  and  salaries,  fees,  and 
expenses  <rf  attomcTs  engaged  in  tliis  wmt:. 

h.  Court  Costs  and  Erpenses:  Fees  of  court  steaograidiers,  expesses  eon- 
neeted  with  takn^  dqioeitioBs,  and  other  tonrt  expenses. 

c  Lose  Printing:  Cost  <rf  law  books,  and  cost  of  printing  briefs,  court 
records,  and  similar  papers. 

NOTK  A. —  In  their  aaaoal  lepoils  to  tlie  PnbUe  Serrfce  CoaaisslOB.  corpoiatiaas 
wflll  be  rrqidred  to  clsssif}-  to  this  aceooat  oadcr  the  three  heads  •«>.  (C>  aad 
(c).  abore  grrca. 

Hon  B. — The  cQc^ensatioa  of  the  general  solicitor  or  eoaasei  aad  other  attor- 
neya  engaged  partly  ia  tbe  defease  or  aettlemeat  of  Hummel  suits  and  partly  ta 
other  legal  wotk  riioald  be  piupctlj  importloaed  betaeea  this  aceooat  and  account 
Ksu  KSSS,' **  Gcaeial  Law  BxpcasBS". 

SOCB  Cl  If  it  is  desired  tint  tte  charge  to  opeiatiag  ttptasfi  oa  aceoaat  of 
law  I  ipi  urn  II  in  coaaectioa  with  dsmages  Aall  be  npoa  soaw  arfetttaiy  basia,  the 
■t  so  charged  shaH  be  ciedlted  to  aceoaat  Xol  381.  "  Cssaalties  and  Inananee 
aad  the  actual  dliliaisemeats  abore  caamcrated  shall  be  charged  sgsiaar 
■t. 


48         Public  Seevice  Commission,  Second  District 

E848.  Gknebal  Stationery  and  Feinting. 

Charge  to  this  account  all  expenses  for  stationery  and  printing,  stationery 
supplies,  and  postage,  except  as  hereinafter  provided: 

The  cost  of  printing  briefs  and  other  legal  papers  shall  be  charged  to 
account  No.  E836,  "  General  Law  Expenses,"  or  No.  E847b,  "  Law  Expenses 
Connected  with  Damages,"  in  accordance  with  the  purpose  of  the  printing. 

The  cost  of  printing  signs,  posters,  and  other  advertising  matter  shall  be 
charged  to  account  No.  EC552,  "  Promotion  Expenses  —  Electric,"  under  the 
head  of  "  Advertising  ". 

The  cost  of  such  mechanical  calculators,  typewriters,  duplicating  machines, 
and  other  office  appliances  as  are  not  properly  capitalized,  shall,  if  for  use  in 
general  offices,  be  charged  to  account  No.  E835,  "  General  Office  Supplies  and 
Expenses  " ;  or  if  for  the  use  of  departmental  offices,  to  the  proper  depart- 
mental accounts. 

EC850.  Stobe  and  Stable  Expenses. 

Change  to  this  account  all  matters  provided  for  under  the  following  heads: 

Store  Expenses:  This  head  includes  all  salaries  and  expenses  in  connec- 
tion witli  storerooms,  including  cost  of  sending  material  and  supplies  from 
general  storerooms  to  branch  storerooms,  and  tlie  collection  of  scrap  material. 

Stable  Expenses:  This  head  includes  the  cost  of  feed,  keep,  and  shoeing 
of  horses,  wages  of  stablemen,  hostlers,  veterinary  expenses,  and  all  other 
expenses  of  stabling  horses;   also  the  cost  of  repairing  harness  and  vehicles. 

Note. —  The  cost  of  horses  purchased  to  replace  others  should  he  charged  to 
account  No.  E122,  "  General  Equipment ". 

E852.  Undistributed  Adjustments  —  Balance. 

At  least  once  a  year  an  inventory  of  materials  and  supplies  shall  be  taken, 
and  the  difference  (in  respect  of  any  particular  class  of  materials  and  sup- 
plies) between  the  ledger  and  inventory  balances  debited  or  credited  to  thia 
account  in  case  it  can  not  be  assigned  to  a  specific  account.  Credit  to  this 
account  all  discounts  recovered  through  the  prompt  payment  of  bills  for 
materials  and  supplies  consumed  in  operation,  unless  such  discounts  are 
applied  to  the  particular  bills. 

Note. —  Where  materials  and  supplies  have  been  used  In  construction  as  well  as 
In  operation,  a  suitable  proportion  of  the  shortages  or  overages  disclosed  by  the 
Inventory  may  be  debited  or  credited  to  account  No.  E285,  "  Miscellaneous  Con- 
struction Expenditures". 

E853.  Duplicate  Electric  Charges  —  Cb. 
Credit  to  this  account  all  charges  made  to  any  accounts  in  electric  operating 
expenses  in  respect  of  any  electric  power  or  other  product  of  electric  opera- 
tions of  the  corporation  consumed  therein. 

17.  Expenses  of  Outside  Operations.—  The  detailed  expense  accounts  for 
other  than  electric  operations  will  be  elsewhere  provided  for. 

18.  Tax  accounts. —  An  account  shall  be  kept  of  the  taxes  chargeable  against 
each  particular  class  of  operations,  and  one  for  those  chargeable  against  non- 
operating  revenues.  Each  tax  account  shall  be  appropriately  entitled  (as 
e.  g.,  "  Taxes  Assignable  to  Electric  Operations,"  "  Taxes  Assignable  to  Noii- 


AccoirsTS  FOK  Elkctkicai.  Corpobatioss  49 

opesmtiiig  Berenaes,"  etc),  and  sludl  be  ao  kept  as  to  show  separately  tha 
foUamingz 

State   Framekue    Tax   <m    CapiUU    Stock, 

State    Franekue    Tax    on    Gross    Karmngs, 

Special  Franchise  Tax, 

Taaees  on  Land   (exclusive  of  improremaits). 

Taxes  on  Improcentents  on  Lands, 

Taxes  on  Personal  Property, 

Other  Taxes   (showing  in  detail). 

To  each  tax  account  there  shall  be  charged  monthly  the  amount  of  taxes 
accniing  during  the  month,  and  such  amount  shall  be  concurrently  credited 
to  the  account  "  Taxes  Aocmed  "  (or  to  the  aceoont  "  Prepaid  Taxes,"  if  soeh 
tax  is  prepaid).  The  amount  of  taxes  accruing  during  ai^  month  shall, 
where  the  levy  is  unknown,  be  estimated  as  nearly  as  may  be,  and  when  tha 
levy  is  ascertained  the  matter  shall  be  adjusted  during  the  remainder  of  the 
tax  year.  For  example,  if  at  the  beginning  of  a  tax  year  the  taxes  on  a 
particular  class  of  pr<^rty  are  estimated  to  be  $600  for  the  year,  the  monthly 
chargTe  on  account  of  such  tax  should  be  $50  until  the  amount  of  the  levy 
becomes  kno\m.  If  during,  say  the  fifth  month,  it  is  found  that  the  levy 
for  the  year  is  $640,  there  will  already  hav«  been  charged  up  four  months  at 
$50  per  month,  leaving  $440  to  be  ehaiged  during  the  remainder  of  the  year, 
or  $55  for  the  fifth  month  and  each  numth  tha«after  during  the  remainder  of 
the  year. 

Such  taxes  as  pertain  to  two  or  more  dassea  of  operations  or  to  non- 
operating  revenues  should  be  apportioned  witJi  regard  to  such  operations  and 
non-operating  revenues  upon  an  equitable  basis,  whidi  basis  will  be  required 
to  be  reported  in  the  annual  report  of  the  corporation  to  ibe  Public  Service 
Commission. 

19.  Uncollectible  BiHs. —  For  uncollectible  electric  bills  the  following  ac- 
count is  provided: 

ES70.  UXOOLLECTIBXE  ELECTRIC  BUXS. 

Whoi,  after  a  reasonably  diligent  effort  to  collect,  any  account  stated  for 
electric  energy  sold  baa  proved  impracticable  of  odleetioai,  it  shall  be  charged 
to  this  aeeonnt  and  credited  to  the  account  receivable  in  which  theretofore 
chaxged. 

ao.  Definitions  of  If  on-operating  Revenue  accounts. —  In  the  following  defini- 
tions of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted 
solely  for  contenienoe  of  referenoe  and  are  no  pari  of  the  titles  or  of  the 
d^nitions: 

£901a.  Rett  Accbxjed  fboh  Lk&se  of  EtEcrsic  Plast. 

Credit  to  this  account  monthly  as  they  accrue  all  revenues  flowing  to  the 
corporation  from  its  interests  in  electric  plant  or  equipment  held  by  others 
nnda"  some  form  of  lease  whereby  it  surrenders  possession  of  such  property. 
Hiis  account  contemplates  that  the  taxes  on  property  so  held  are  payable  hjf 
the  tenant  in  possession  and  charged  by  him  to  the  appropriate  tax  account. 
If  under  the  contract  ot  lease  such  taxes  are  payable  by  the  lessor  or  its 
assignee,  such  taxes  shall  be  charged  to  this  revenue  account  and  not  to  any 
of  the  lessor's  tax  accounts,  nor  to  any  o{  its  expense  accounts. 


50  Public  Service  Commission,  Second  District 

E901d.  Miscellaneous  Kent  Re\-em;es. 

Credit  to  this  account  monthly  as  they  accrue  all  miscellaneous  rent  reve- 
nues flowing  to  the  corporation  as  a  return  upon  leased  property  other  than 
electric  plant  and  equipment.     Such  revenues  shall  be  classified  as  follows: 

Leasehold  Revenues:  That  is  to  say,  all  revenues  flowing  to  the  corpora- 
tion from  its  interests  in  property  held  by  others  under  any  lease  the  entire 
term  of  which  is  greater  than  one  year.  This  contemplates  that  the  taxes 
on  property  so  held  are  payable  by  the  tenant  in  possession  and  charged  by 
him  to  the  appropriate  tax  account.  If  under  the  contract  of  lease  such  taxes 
are  payable  by  the  lessor  or  its  assignee,  such  taxes  shall  be  charged  to  this 
revenue  account  and  not  to  any  of  tha  lessor's  tax  accounts,  nor  to  any  of 
its  expense  accounts. 

Other  Rent  Revenues:  That  is  to  say,  all  revenues  flowing  to  the  corpora- 
tion from  its  interests  in  property  held  by  others  under  any  lease  or  contra'3t 
for  a  term  not  to  exceed  one  year  from  the  beginning  of  the  term,  or  held 
at  will  or  upon  sufferance.  This  account  contemplates  that  the  taxes  on  prop- 
erty of  this  character  shall  be  paid  by  the  landlord  and  charged  to  the  ap- 
propriate tax  account.  If  under  the  contract  covering  the  holding  for  terms 
of  one  year  or  less,  or  at  will,  the  taxes  are  to  be  paid  by  the  tenant,  the 
amount  of  such  taxes  shall  be  credited  month  by  month  to  this  account  aa 
they  accrue,  and  shall  correspondingly  be  charged  to  the  tax  account  covering 
taxes  on  property  of  this  "character. 

Entries  in  this  account  mlist  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  in 
the  annual  reports  to  the  Public  Service  Commission. 

E902.  Intebest  Revenues. 

Credit  to  this  account  monthly  as  it  accrues  all  — 

Interest  from  Bound  Investments:  That  is  to  say,  all  interest  accruing  to 
the  corporatioi)  upon  such  of  its  interest-bearing  free  investments  (as  here- 
inbefore defined)  as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Free  Investments:  That  is  to  say,  all  interest  accruing  to 
the  corporation  upon  such  of  its  interest- bearing  free  investments  (as  here- 
inbefore defined)   as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Other  Sources:  That  is  to  say,  all  interest  accruing  to  the 
corporation  upon  its  interest-bearing  current  assets,  special  deposits,  and  all 
other  assets  not  provided  for  under  the  two  foregoing  heads,  where  sucli 
interest  is  a  liability,  actual  or  contingent,  of  solvent  concerns  and  individuals. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately 
in  the  annua,!  reports  to  the  Public  Service  Commission. 
E903.  Dividend  Revenues. 

Credit  to  this  account  at  their  cash  value  and  as  of  the  date  when  col- 
lectible, all  — 

Dividends  on  Bound  Investments:  That  is  to  say,  all  dividends  declared 
by  solvent  concerns  upon  stocks  held  by  the  corporation  among  its  bound 
investments. 

Dividends  on  Free  Investments:  That  is  to  say,  all  dividends  declared  by 
solvent  concerns  upon  stocks  held  by  the  corporation  among  its  free  invest- 
ments. 


Accx)usTS  FOB  Electrical  Cokporatioxs  51 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  in 
the  #iinii«l  reports  to  the  Public  Serrice  Commission. 

£904.  Profits  fbom  Ofebatioxs  of  Others. 

Whenerer,  in  accordance  with  the  terms  of  any  contract,  the  corporation 
is  entitled  to  participate  in  the  profits  resulting  from  the  operations  of  others, 
all  revenues  accruing  to  the  corporation  from  such  source  shall  be  credited 
to  this  account. 

NoTCL —  This  account  does  not  include  any  dividends  on  stocks.  Sach  dividenda 
should  be  credited  to  account  No.  £^903.  "  Dividend  Revenues  ". 

£905.   MiSCELLAXEnUS   XOX-OPEKATLSG   RtVESL-ES. 

To  this  account  shall  be  credited  all  non-operating  revenues  accniing  to  tha 
corporation  and  not  provided  for  in  any  of  the  forgoing  accounts. 

ai.  Definition  of  Non-operating  Revenue  Dednctions  account. —  To  an  ac- 
count entitled  "  Xon-operating  Revenue  Deductions  "  shall  be  charged  all  mat- 
ters provided  for  tinder  the  following  stib-accounts : 

a.  Rext  Expense:  This  sub-account  includes  all  matters  provided  for  under 
the  following  two  heads : 

Leasehold  Expense:  That  is  to  say,  all  expense  arising  in  connection  with 
the  procuring  of  revenues  from  leaseholds  having  terms  greater  than,  one  year, 
including  the  cost  of  n^otiating  contracts,  advertising  for  tenants,  fees  paid 
conveyancers,  collectors  commissions,  cost  of  enforcing  payment  of  rent,  cost 
of  ousting  tenants,  etc.,  and  all  other  expense  arising  in  connection  with  such 
leaseholds.  This  applies  only  to  leases  conveying  the  property  out  of  the 
jMMaeasion  of  the  corporation,  and  it  includes  the  expense  accruing  while  the 
property  is  idle  and  awaiting  an  occupant.  This  head  includes  cost  of  mainte- 
nance of  the  property  when  such  cost  is  borne  by  the  corporation.  Such 
maintenance  includes  depreciation  as  well  as  reparable  wear  and  tear,  (t 
does  not  include  taxes. 

Other  Rent  Expend:  This  head  is  analogous  to  the  preceding  head  "  Lease- 
hold Expense,"  and  differs  from  that  only  in  that  this  provides  for  expense  in 
connection  with  property  let  for  a  term  of  one  year  or  less. 

6.  Interest  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  procuring  interest  upon  investments,  such  as  expense  of  col- 
lection, expense  of  investigating  delay  in  payment,  expense  of  enforcing  pay- 
ment, and  the  like.     It  does  not  include  taxes  on  such  investments. 

e.  Dividend  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  the  collection  of  dividends  on  stocks  of  other  corporations; 
^8o  all  expense  incurred  in  the  investigation  of  the  affairs  of  the  corporations 
whose  stocks  are  held,  whether  for  the  purpose  of  detecting  mismanagement 
or  for  the  purpcse  of  inducing  the  daclaration  of  dividends,  and  all  expense 
connected  with  enforcing  payment  of  dividends  when  declared.  It  does  not 
include  taxes  on  such  investments. 

d.  Others'  Operations  Expense:  This  sub-account  includes  the  cost  of 
negotiating  contracts  whereunder  the  corporation  is  to  participate  in  profits 
resulting  from  the  operations  of  others;  also  all  expense  of  collecting  the  cor- 
poration's proportion  of  such  profits,  and  all  expense  connected  with  procur- 
ing the  modification  or  the  dissolution  of  any  such  contract. 


52  Public  Seev^ce  Commission,  Secoxd  District 

e.  MiscELLANEXJUS  NoN-oPERATiNG  EXPENSE:  This  sub-account  include* 
all  non-operating  expense  (as  hereinbefore  defined)  which  is  not  provided 
for  in  the  forgoing  sub-accounts. 

/.  NoN-oPEBATiNG  Ta}.es  :  This  sub-account  includes  all  taxes  accruing 
upon  non-operating  properly  and  all  assignable  to  non-operating  revenues. 

g.  Uncollectible  Non-opekatixg  Revenues:  When  any  non-operating 
revenues  are  judged  by  the  corporation  to  be  uncollectible,  the  amount  thereof 
shall  be  credited  to  the  account  in  which  theretofore  charged,  and  charged 
to  the  account  "  Non-operating  Revenue  Deductions  "  under  the  head  of  "  Un- 
collectible Non-operating  Revenues  ". 

Note. —  In  annual  reports  of  corporations  to  the  Public  Service  Commission  this 
account  will  be  required  to  be  fully  analyzed. 

22.  Income  Deductions. —  The  sum  total  of  the  credit  balances  in  the  revenue 
accounts  for  any  particular  operation  at  the  close  of  a  fiscal  period  gives 
the  gross  revenue  from  that  operation  for  that  period.  This  gross  revenue 
diminished  by  the  operating  expenses,  the  taxes,  arid  the  uncollectible  bill* 
assignable  to  such  operation  for  the  period,  gives  the  income  from  that  opera- 
tion for  the  period.  Similarly  for  the  non-operating  revenues,  the  non-operat- 
ing expenses,  and  the  non-operating  taxes. 

The  aggregate  of  the  incomes  from  the  several  operations  and  the  non- 
operating  income  is  tlie  gross  income  applicable  to  corporate  and  leased  prop- 
erties. As  has  before  been  said,  the  gross  income  is,  in  the  usual  case,  subject 
to  various  compulsory  deductions,  and  these  are  hereinafter  called  Income 
Deductions. 

23.  Definitions  of  Income  Deduction  accounts. —  In  the  following  definitions 
the  letters  and  numbers  prefixed  to  the  titles  of  the  several  accounts  are 
inserted  solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or 
of  the  definitions: 

921.  Interest  Deductions. 

Charge  to  this  account  monthly  (or  as  otherwise  below  directed)  all  mat- 
ters provided  for  under  the  following  five  heads: 

Absolute  Interest  Accrued  on  Funded  Debt:  This  head  includes  all  interest 
accruing  absolutely  on  the  outstanding  funded  debt  of  the  corporation. 

Contingent  Interest  Accrued  on  Funded  Debt:  This  head  includes  when  the 
contingency  occurs  all  interest  accruing  contingently  on  the  outstanding  funded 
debt  of  the  corporation.  This  includes  such  matters  as  interest  on  income 
bonds. 

Interest  Accrued  on  Receiver's  Certificates:  This  head  includes  all  interest 
accruing  on  receiver's  certificates  which  are  liens  upon  the  property  of  the 
corporation  or  any  part  of  it. 

Interest  Accrued  on  Other  Unfunded  Debt:  This  head  includes  all  interesl 
accruing  on  all  unfunded  debt  of  the  corporation  except  receiver's  certificates. 

Interest  Accrued  on  Debenture  Stocks:  This  head  includes  all  interest  ac- 
cruing on  the  outstanding  debenture  stocks  of  the  corporation. 

Entries  in  the  account  "  Interest  Deductions "  must  be  made  in  such  wise 
as  to  show  separately  the  classes  above  indicated,  which  will  be  required  to 
be  stated  separately  in  the  annual  reports  to  the  Public  Service  Commission. 
922a.  Rent  fob  Lease  of  Other  Electric  Plant. 

Charge  to  this  account  monthly  all  amounts  accrued  against  the  account- 
ing corporation  for  rent  of  electric  plant  and  equipment  which  it  ImUls  under 


ACCOHXTS   FOB  ElJSCTKICAI.    CoSPOKATIOHS  53 

■ooae  iiorm  of  lease  from  another  company  or  eorpontion  aad  of  vhidi  it  has 
the  ezdnsive  poasession.  TVxes  acemed  on  sndi  plant  and  eqnipmoit  diaS 
not  he  ehaiged  to  this  aceonnt  bat  to  the  api«tipriate  Taxes  aceoant.  If  sadi 
taxes  ars  (under  the  contract  of  lease)  payable  by  the  losor  or  TeTcraHnier, 
they  shall  be  credited  to  this  aceonnt  and  charged  to  the  appropriate  Taxes 
aoeoont.  Such  taxes,  when  paid  by  the  lessw  or  reteiaioner,  shall  be 
dax;ged  to  its  rent  rerenne  aeeount  and  Bot  to  its  Taxes  aeeonnt^  to  tiie  end 
that  taxes  i^on  sodi  plant  and  equipmeat  shall  he  reported  by  the  eorpo- 
ratioB  IB  posaeanoiL. 

92S2.  OiHKB  Bnrr  DnvdHura. 
Chaige  to  this  aeeoimt  the  nattexs  prorided  for  in  the  foUowii^  sob- 


f.  Jonrr  Fachjtt  Bests:  Where  any  plant  or  equipment  i3  maintained 
or  opeimted  by  another  corporation  for  the  joint  benefit  of  the  aeoonntiBg  cor- 
poistaon  and  others  under  a  joint  arrangonent  for  sharing  the  txpiaae  (oa 
the  basis  of  the  relatiTe  amounts  of  boiefit  to  the  several  paitiapaBts),  if 
■idh  joint  arrangement  prorides  for  including  in  the  charge  against  the  ae- 
wwUng  corpoTBtion  any  pure  rent,  profit,  or  return  uptHt  sodi  piaat  or 
eqnqiment  over  and  above  depreciation  and  other  expense  <rf  maintenaaee 
and  operation,  such  pure  rent,  or  {nrofit,  or  return  upon  property  shall  be 
eh^ged  to  this  sub-account. 

Xoxs. —  TUs  should  be  read  in  coniiectiaa  vlth  leTcnne  aecmmt  No.  425,  "Joint 
Beetric  Bent  Beronie**.     (Sec  pase  33.) 

g.  Mmscesxjlseous  Rest  DEOccnoTrs :  This  sob-aecount  includes  all  mis- 
eellaneoiia  rents  payable  not  elseirbere  provided  for. 

Hons  A. —  Rents  for  fnmished  trfBecs  (and  for  oflee  rooms  In  eSee  baHAngs 
heated  and  lifted  br  the  landlotd)  shoold  not  be  duuged  to  tiUs  aeeeont.  bat  t» 
the  appropriate  fTpfnwe  aeeooat. 

Kton  B. —  Entries  in  tids  aceoant  nmst  be  made  in  sodi  wise  as  to  pcindt  as 
analjFsis  ia  the  annnal  report  of  the  eKp<^atioB  in  accordance  with  tbe  sob- 
acceonts  abore  d^bied. 

^3.  SrsKESG  Fc20>  AccsrAis. 

Charge  to  this  account  month  by  month  all  accruals  required  to  be  made 
to  sinking  funds  in  aeeordanee  with  the  proTisi<»s  of  mortgages  or  other 
ODatraets  requiring  Oe  establishment  of  rinking  funds.  AH  accruals  to  sink- 
ing or  other  funds  created  wdnntarily  by  the  corporation  and  not  in  puxsn- 
aaee  of  the  prorisioBS  of  any  mortgage  or  other  sontract  or  of  the  reqnire- 
of  law  shall  be  excluded  herefrom. 


934.  GcABAimss  of  Pekcoihc  Pat^cexts. 
CSwige  to  this  account  all  unsecured  accruals  of  obligations  ^arising 
eontraiAB  whereby  the  corporation  has  guaranteed  the  aimiuil  or  aiors  fre- 
fmemt-pmodic  payment  of  money  or  performanee  of  other  obligation  OB  fte 
part  of  another  corporation  or  person,  and  because  of  the  default  of  sach 
other  corporation  or  penon  the  lialHlity  of  the  pr«ait  corporation  has  be- 
eoaae  actual.  This  account  does  not  include  such  matters  as  guaranties  of 
paymoit  of  primeipal  of  funded  debt  and  other  nmilar  things  relating  to  a 
aeries  of  years,  nor  does  it  include  any  guaranties  for  which  the  corporation 
has  protected  itself  tiirough  taking  ample  security.  If  insnflieient  seeuii^ 
has  hem  taken  in  respect  of  such  »»nin«^  or  more  frequent  payments^  the 
mmstcured  portion  thereof  shall  be  charged  to  this  account. 


54         Public  Sekvice  Commissio:^,  Second  District 

925.  Loss  ON  Operations  of  Otuebs. 
Whenever  in  accordance  with  the  terms  of  any  contract  the  corporation  is 
bound  to  contribute  toward  reimbursement  of  the  losses  resulting  from  the 
operations  of  others,  all  liabilities   accruing   to  the  corporation   from    such 
source  shall  be  charged  to  this  account. 

926.  Othee  Contractual  Deuuctions  frou  Income. 

Charge  to  this  account  month  by  month  all  contractual  liabilities  arising 
from  annual  or  other  more  frequent  periodic  matters  and  not  includible  in 
any  of  the  foregoing  accounts.  This  account  includes  only  deductions  from 
income  and  not  any  liabilities  arising  in  exchange  for  goods  or  other  things 
purchased. 

927.  Amortization  of  Landed  Capital. 

Charge  to  this  account  at  the  close  of  any  fiscal  period  such  portion  of 
the  original  money  cost  (estimated  if  not  known)  of  landed  capital  as  is 
necessary  to  cover  the  proportion  of  the  life  thereof  expired  during  such 
period. 

Note  A. —  The  amounts  charged  to  this  account  shall  be  concurrently  credited  to 
account  No.  374,  "Accrued  Amortization  of  Capital  ".      (See  page  27.) 

Note  B. —  When  anj-  landed  capital  expires  or  is  otherwise  retired  from  service 
(as  e.  g.,  through  sale),  the  capital  account  or  other  indicant  account  (if  any) 
originally  charged  therewith  shall  be  credited  with  the  amount  originally  charged, 
the  account  "Accrued  Amortization  of  Capital  "  shall  be  debited  with  all  amounts 
theretofore  credited  to  such  account  in  respect  of  such  landed  capital  so  going  out 
of  service,  the  appropriate  account  shall  be  debited  with  the  proceeds  of  sale  (if 
any),  and  any  necessary  adjustment  shall  be  made  through  the  "Corporate  Surplus 
or  Deficit  "   account. 

928.  Amortization  of  Debt  Discount  and  Expense. 

Charge  to  this  account  at  or  before  the  close  of  any  fiscal  period  that  pro- 
portion of  the  unamortized  discount  and  debt  expense  on  outstanding  debt 
which  is  applicable  to  the  period.  This  proportion  shall  be  determined  ac- 
cording to  a  rule,  the  uniform  application  of  which  during-  the  interval  be- 
tween the  issue  anri  the  maturity  of  any  debt  will  completely  amortize  or 
wipe  out  the  discount  at  which  such  debt  was  issued  and  the  debt  expense 
connected  therewith.  Such  amortization  may  at  the  option  of  the  corporation 
be  earlier  effected  by  charging  all  or  any  portion  of  such  discount  and  debt 
expense  to  account  No.  939,  "  Other  Deductions  from  Surplus,"  immediately 
upon  issue  of  the  debt  or  thereafter. 

929.  Amortization  of  Premium  on  Debt  —  Cb. 

C-redit  to  this  account  at  or  after  the  close  of  any  fiscal  period  the  propor- 
tion of  the  premium  at  which  outstanding  debt  was  issued  which  is  applicable 
to  the  period.  This  proportion  shall  be  determined  according  to  a  rule,  the 
uniform  application  of  which  during  the  interval  between  the  issue  and  the 
maturity  of  any  debt  will  completely  amortize  or  wipe  out  the  premium  at 
which  such  debt  was  issued.  Such  amortization  may  at  the  option  of  the 
corporation  be  ettected  by  crediting  all  or  any  portion  of  such  premium  to 
account  No.  931b,  "  Other  Additions  to  Surplus,"  only  upon  the  maturity 
of  the  debt. 

34.  Appropriations. —  The  balance  resulting  from  closing  the  foregoing 
Income  Deduction  accounts  for  any  fiscal  period  into  Gross  Income  for  that 
period  gives  the  Net  Corporate  Income  for  the  period.  The  net  corporate 
income  being  of  the  same  nature  as  the  corporate  surplus  shall  be  closed  into 
the  "  Corporate  Surplus  or  Deficit "  account.     The  group  of  accounts  which 


Accoryrs  fok  Elbctmcai.  CoKPOKATio3irs  55 


Apv  fnr  avr  fiscal  period  ttc  rliingw  n  ti«  *GMpa»te  Suploi  or  Defiai" 
■iiiiiiBBi  mi«  des^Mlcd  tiK  'ApfntKimtiam''  aetoota,  far  the  icaaiH  that 
aateiaaliallT  all  of  tkem  are  aabject  aaij  to  tlw  diseicliaM  of  tte  cocpoFa- 
tim.  ^tibe  CMl  of  cadk  fiscal  period  eack  of  the 'Jkppto^iatiaa' aeeoota 
dtaU  be  doaed  iato  the  '^  C<wporaie  Snpfais  or  Defieif  acconat. 

9S.  IVfiiTftitTTt  if  ikpfngriatMB  accMntm.—  la  the  foUowiag  defiaitiaH  of 
tha  AppopriatMNt  aceomlB  the  lettea  ajid  anmbera  prefixed  to  the  titles  of 
the  acwiaat*  are  iiaetted  aoMf  for  eoancBioiee  of  lefeieane  aad  are  ao  part 
of  tibe  tttles  «»  off  the  defiaitkan: 

931a.  Bab  Dbbxb  GauacnBt 

Whea  aaj  debt  theretofcm  TrittcB  off  as  a  bad  ddi  is  coDeeted,  the  aMmt 
of  the  collectiiw  shall  be  czeditied  to  Ham  aeeoacL  Ifwpfw  imw^fcd  ia  aaah 
•oBectioa  ahall  be  charged  to  thiaageuwat, 

931bL  OndK  hmtmams  to  Scbtlcs. 

Credit  to  this  aeeoaaA  all  addHioaBto  sai^hBB  beeaase  of  i 
iai;  ia  prin-  fiscal  periods,  aad  all  otter  additioai  to  sorplas 
piwffided  far. 

HoaK. —  A  cs^plete  aaativii  «f  tUs  acroaai  wffl  be  ni|iilred  ia  aaaaal  reporta  i£ 
tmpaaMtma  to  the  PaiOe  Senriee  CwiiliaL 

93S.  BxFESSES  Elsevhsxe  UAmniittD  Foa. 

Chaige  to  this  aeeooat  all  eipea«A  aot  durgeable  as  a  part  of  opifatiag 
caiycaaea  or  of  aoa-opcxalJap  *  iptawis,  aaeh  aa  fiaes  ieried  oa  the  eorpoialioa 
for  TifdatioB  of  lav,  fn-  adafeaaaaeei,  for  aoahfoaaaaee,  «tb,  fiaes  lewied  oa 
dliailuis,  ofieers,  aad  oOcr  eaipiafeea  aad  ■iwihiJ  bf  tte  eorporatioa,  do- 
aatioat  to  faads,  to  charges  aad  oither  assoeiatiaKi^  aad  otho-  lilae  cmcaies 
aad  oalgoesw 

933.  JysrnmsBB  on  Octsiaxikxc  Ssocksw 

Whea  aar  drridead  is  declared  npon  aflyovtstaadiag  stocks  of  the  enpo- 
latxaa,  the  aBooat  of  saeh  diridead  ahall  thtunpoa  be  ihaiged  to  thai  ae- 
ooaaL  All  eatries  to  tins  aeeoaat  ihall  show  tte  aasoaat  of  stock  apoa  vbidh 
fla  diridead  is  dedared,  the  daas  off  sadt  stodc,  aad  the  rate  of  the  dividead 
aa  adl  as  the  aasoaat  thvaoff;  aad  if  tte  dhridead  is  paTable  ia  aagr  otter 
tkias  <kui  anaer,  sadi  thii^  shaD  be  described  ia  tte  catiy  witt  safiirifat 
partiealarilN^  to  ideatilT  it,  aad  the  aetaal  aaiaex  valae  ttereaf  AmU  bo 
stated  as  the  aaooat  of  tte  firidead. 

Whea  aay  diridead  is  dedared  apoa  the  stocks  of  the  eorporatioa  bdd  ia 
its  treasai7,  tte  anonat  of  sock  diridead  thcseoa  shall  be  ereditod  to  tins 
aeeooat.  fiatries  of  credito  to  thia  aeeiaiat  ahaD  be  ande  witt  the  aaae  de- 
gree of  partieBlaritT  as  is  prescribed  ia  tte  preeediag  paragraph. 

934.  Astemrnuatus  EuaEWHiaE  UxraonseD  FoaL 
Charge  to  this  accoaat  sock  aaortixation  as  is  aot  dsevhere  pnmded  for. 
ma  aeeoaat  pranrides  for  all  optjoaal  anortixatioa,  sack  as  ttat  nt  diacooat 
oa  stocka  ontstaadiag.  abaadoaed  property,  etcL 

9Z5.  ArrmartaAnass  to  Resestes^ 
Cbaxge  to  this  accuuat  all  optioaal  apfn^viatioBS  to  reserwcs. 

936.  GiiTS  TO  GonraoxxED  CoaraaATioxs. 
Ckaxge  to  this  accoont  all  ^fis  auide  br  the  eorpmrntion  to  its  eoatroDed 
«orporatk)as,  also  sadi  portion  of  all  adrsaees  ttocto  aa  are  aot  carried  aa 


56  Public  Sekvice  Commission,  Second  Disteiot 

937.  Other  Appeopriations. 

Charge  to  this  account  all  optional  appropriations  made  by  the  corpora- 
tion and  not  elsewhere  provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports 
of  corporations  to  the  Public  Service  Commission. 

938.  Bad  Debts  Written  Off. 

Charge  to  this  account  the  amount  by  which  debts  are  written  oflf  from  the 
accounts  of  the  corporation  when  they  become  stale  and  are  placed  in  the 
"  bad  debt "  class. 

Note. —  Such  "  uncollectible  bills  "  as  have  been  provided  for  in  the  heretofore 
defined  "  Uncollectible  Bills  "  accounts  must  not  be  Included  In  this  account. 

939,  Othep  Deductions  from  Subplus. 

Charge  to  this  account  all  deductions  from  surplus  because  of  erroneous 
accounting  in  prior  fiscal  periods,  and  all  other  deductions  from  surplus  not 
elsewhere  provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  la  annual  reports 
of  corporations  to  the  Tubllc  Service  Commission. 


LIST  OF  ACCOUNTS- 


SCHEDULE  A:    BALANCE  SHEET  OK  DfDICAJiT  ACCOLTfrSu 

Fexss  C&rruL.  pagb 

£10tL    Rze4  Capital.  Onrntar  31.  190S • 

£LiOL     liud  Devvted  to  Klrctrfc  OjWTitiaT • 

ML     OtsnustiOB 10 

KUO.     Ffffchei    (Ekctiic)     .^ 10 

ElOS.     Patort-nsfcts  (Efcctzic) 11 

ElOi.     Otfecr  iMiaaeJbSe  BIcctxie  Ca^tal 11 

£12L    Gcaoral  Strartarea 11 

E12S.     G—enJ  Eqaiiift 12 

Ei31.     JMrnx,  CMMMbt,  mat  npe  Limes 12 

E132.     Paver  Plaat  BtilffiBss 12 

£1-Ua.  Fmmmsxs.  BoOecs.  mmA  Aecesaoiics 13 

E141bL  Steaa    ^^iaes 13 

E142.    TtoMnes  aiad   Watcr-vbeeis 13 

K143a.  Gas  Frodveecs  aad  A<%e»ories 13 

El-13bL  Gas   EiagbMs    13 

E144a.  mectxic  Gcnoatan 14 

E144h^  Anrwmmr  Wertric  Poser  Ff  ipi  ai 14 

E145u     marfllaiMwa  Pomer  Plaat  B«alpaaeBC 14 

£1»L     Si*«latioB  BrildiBss    14 

E13S.     SafcatMtioai   BqpipMt 14 

Em.     Polea  aad  Fixtvics .—.....  15 

E1C2.     Uadnam—a  Comamtx :  15 

mOL    Ti  ■aaMlBiiiiii  ^ystan  IS 

ElOL     DMiSMtiaa    Srataat    15 

E1C5.     Use  TnaaConaos  aad  Derias IS 

E106L    Electrie   Scnrieea    15 

E16Ta.  Electrie   Meters   IC 

aaCTk.  BlecCric  Meter  iMtallatioa IC 

KITL     Maaiclpal  Street  Li^tias  System  lEleetiick IC 

KITS.     CoMU>Jal  Are  LsMps    IS 

El  73.    0owcr  Lmmps !• 

E174.     BlectiiL  Motms  aad  Hcatos 17 

EITSl    Kkitiie  TiMis  aad  lavkeaKats IT 

eifC    TkMiii    LabocatatT  Efatpiaeat IT 

E177-     Oaer   TaagiHe    Bleetiic   Cqrttal IT 

E3SL    ir>ifcla«>ilaft  aad  gaiieilal««de«ee   IT 

ES8S.     Law  EnieBMBtaies  Dwrtag  CuMUtUow. it 

tajaries  Dtiag  Caailimliua it 

Tnea  DaiiBc  OaaativetliM is 

MiKcOaaeoas  Oiaaliai  liua  Bxpeaditaies IS 

B286u     laUicat  Darftig  Ouaatiactioa 18 

OIIOl     Laad  la  Otfcer  DepaittaU 18 

OlOS.     rtaadUses  ia  Other  Depactaaeats IS 

O103.    Fateat-rights  la  Other  P^gailaajts 19 

OKHL     Other  lataaeWe  Capital  ia  Other  DepaitBcats 19 

012a     TaagAle  Ca^tal  la  Other  Depaitawjts 19 

rtOJkTVSQ     CkmCAU 

E  la     Ibtexflala  aa«  Sapplles 19 

L     Ch* 20 

2.     mils  KecefTaM^    «• 


58  Public  Service  Commission,  Second  Disteict 

FAGB 

3.  Accounts    Receivable 20 

4.  Interest   and   Dividends   Receivable 20 

5.  Other  Current  Assets 21 

Investments. 

300.     Investments 21 

Special  Deposits. 

311.  Coupon   Special  Deposits 21 

312.  Dividend  Special  Deposits 22 

813.     Other  Special  Deposits 22 

Prepayment  Accounts. 

321.  Prepaid  Taxes    22 

322.  Prepaid    Insurance    22 

323.  Prepaid    Rents 22 

324.  Other   Prepayments    22 

Suspense   Accounts. 

331.  Unamortized  Debt  Discount  and  Expense 23 

332.  Other  Suspense 23 

Re-acquired   Securities. 

340.     Re-acqulred  Securities   24 

Debt. 

360.     Funded 24 

Unfunded 24 

351.  Taxes   Accrued    25 

352.  Receiver's   Certificates    25 

353.  Judgments  Unpaid 25 

354.  Interest    Accrued    25 

355.  Dividends  Declared    26 

356.  Bills    Payable   26 

E357a.       Consumers'  Deposits  —  Electric    26 

357b.       Other  Accounts  Payable    26 

358.         Other  Unfunded   Debt    26 

Reserves. 

Permanent 26 

371.  Premiums  on   Stocks    26 

372.  Other  Permanent  Reserves  .- 27 

Temporary 27 

Contractual 27 

Required 27 

374.  Accrued  Amortization  of  Capital 27 

375.  T'namortized  Premium  on  Del>t 27 

376.  Other   Required   Reserves    28 

Optional 28 

381.  Casualties   and   Insurance   Reserve 28 

382.  Other    Optional    Reserves 28 

Stocks. 

390.     Stocks 28 

SCHEDULE  B:    INCOME  ACCOUNT. 
Operating  Revenues. 

401.  Municipal  Street  Lighting  —  Arc 31 

402.  Municipal    Street    Lighting  —  Incandescent 31 

403.  Lighting    Municipal    Buildings  —  Electric 31 

404.  Municipal    Heat   and   Power  —  Electric 32 

405.  Miscellaneous   Electric   Revenue  —  Municipal 32 

406.  Commercial   Flat   Rate  Lighting 32 

407.  Commercial    Flat    Rate    Power 32 

408.  Commercial    Metered    Lighting 32 

400.     Commercial   Metered  Power    32 

410.  Railroad   Corporations '32 

411.  Other  Electrical  Corporations    32 


List  of  Accouxts  59 


PACK 

421.  Bait  of  Electric  Meters 33 

422.  Bait  of  Electric  Appliances 33 

423.  Electric  Herctumdlse  and  Jobbing  Berenne 33 

424.  Sale  of  Byproducts    S3 

425.  Joint  Electric   Bent   Bevenne 33 

426.  Break-down    Service    33 

427.  Other  Sliscellaneoos   Electric   Bevenne 33 

Operating   Expenses. 

/.  Prodmctiom  t^pcuz*». 

E501.     Station   Superintendence  and  Labor 35 

E502.     Fuel    for   Power 35 

E5u3.     Water  for   Power    ". 35 

E504.     Lubricants  for  Power    35 

E505.     Production  Supines    and    Station   Expense 36 

E307.     Bei»airs  of  Power  Plant  Buildings 36 

£^508.     Bepairs    of    Pumaces,    Boilers,    and    Accessories 36 

1m09.     Bepairs  of  Steam   Engines    37 

E510.     B^tairs  of  Hydraulic  Power  Plant 37 

E511.     Kqiairs  of  Gas  Power  Equipment   37 

E512.     Bcftairs  of  Power  Plant  Electric  Equipment 37 

E513.     Miscellaneous  Station  Bepairs    38 

E514.     Steam  from  Otber  Sources 38 

E515.     Power  Gas  from  Other  Sources 38 

E516.     Electric  Energy  from  Other  Sources 38 

//.   TrantmiMsUm  Expenses. 

B521a.  Transmission  Subway  Kent 38 

E522a.  Transmission  Pole  and  Fixture  Bepairs 39 

E523a.  Transmission  Underground  Conduit  Bepairs    39 

E524.     Transmission   System   Bepairs    39 

E525.     Sub-station   Labor    39 

E526.     Sob-staticm  Supplies  and  Expenses 39 

B527.     Bepairs  of  Sub-station  Buildings 40 

^28.     Bepairs    of    Sub-station    Equipment 40 

///.  Elertric  Storage  Expenses. 

Eo29.     Electric   Storage   Expenses    40 

IV.  DisbUmluM  Expenses. 

E531.     Electric  Distribution  Scperintendence 40 

E532.      Electric  Distribution  Becords  and             Expense 40 

E533.     Setting  and  BemoTing  Meters  and  Transformers   47 

E521b.  Distribution   Subway   Bent    41 

E522b.  IMstrlbntion  Pole  and   Fixture   Bepairs 41 

Bo23b.  Distribution  Underground  Conduit   Bepairs 41 

E534.     Distribution    System    Bepairs    41 

E535a.  Bepairs  of  Electric    Services    41 

E535b.  Bepairs   of   Transformers    41 

B536.     Electric   Meter   Operation   and  Bepairs    42 

F.  UtUization  Expenses. 

541.  Commercial  Arc  Operation   42 

542.  Commercial  Arc  Bq^lrs 42 

543.  Commercial    Incandescent   Operation    42 

544.  Consumers'    Installation    Expenses    42 

5-.W.     Municipal  Street  Arc  Operation   43 

546.  Municipal  Street  Arc  Bepairs 43 

547.  Municipal  Street  Incandescent  Operation   43 

548.  Municipal  Street  Incandescent  Bepairs 43 

VI.  Commercial  Expenses. 

E551.     Commocial   Administration  —  Electric    43 

ECS52.  Pranotion   Expenses  —  Electric 44 


60 


Public  Service  Commission,  Second  District 


PAGET 

VII.  Oeneral  and  Miscellaneous  Expenses. 

E832.     General  OflScers  and  General   Office  Clerks    44 

E835.     General  Office  Supplies  and  Expenses 44 

E836.     General  Law  Expenses 4» 

E837.     Miscellaneous  General  Expenses   45 

E838.     Insurance 45 

E839.     Relief    Department    and    Pensions    45 

E840.     Electric  Franchise  Requirements    45 

E842.     General    Amortization  —  Electric 45 

E845.     Electric  Expenses  Transferred  —  Cr 46^ 

E846.     Joint  Operating  Expense  —  Cr 4ft 

E847a.  Accidents  and  Damages   47 

E847b.  LaW  Expenses  Connected  with  Damages 47 

E848.     General  Stationery  and  Printing  48 

EC850.  Store   and   Stable   Expenses    48 

E852,     Undistributed  Adjustments  —  Balance 4S 

E853.     Duplicate   Electric   Charges  —  Cr 48- 

Taxks. 

E860.     Taxes 4S 

E870.     Uncollectible  Electric  Bills   4l> 

Non-operating    Ukvknuks. 

E901a.  Rent  Accrued   from  Lease  of   Electric  I'lant ' 4!> 

EfiOld.  Miscellaneous  Rert   R<^venues    50 

E902.     Interest  Revenues r,0 

E903.     Dividend  Revenues 5t> 

E904.     Profits  from  Operations  of  Others   51 

E905.     Miscellaneous  Non-operating  Revenues   51 

Non-operating  Rkvknue  Deductions. 

910.     Non-operating  Revenue  Deductions    51 

a.  Rent    Expense    51 

b.  Interest  Expense 51 

c.  Dividend  Expense    51 

d.  Others'  Operations   Expense -. 51 

e.  Miscellaneous  Non-operating  Expense 52 

f.  Non-operating   Taxes    52 

g.  Uncollectible  Non  operating  Revenues   • 52 

IxcoMB  Deductions. 

921.  Interest  Deductions 52 

922a.  Rent  for  Lease  of  Other  Electric  Plant    52 

922.  Other  Rent  Deductions   53 

923.  Sinking  Fund  Accruals   5a 

924.  Guaranties  of  I'eriodic  Payments 53 

925.  Loss   on    Operations   of   Others S-t 

926.  Other  Contractual  Deductions  from  Income 34 

927.  Amortization  of  Landed    Capital    54 

928.  Amortization  of  Debt   Discount  and  Expense    54 

929.  Amortization  of  Premium  on  Debt  —  Cr 54 

Appuopbiation  Accounts. 

931a.  Bad  Debts  Collected   55 

931b.  Other   Additions   to   Surplus 55 

932.  Expenses   Elsewhere   Unprovided   for 55 

933.  Dividends  on  Outstanding  Stocks 55 

934.  Amortization  Elsewhere   Unprovided   for 55 

935.  Appropriations  to  Reserves    55 

93«i.     Uiits    to    Controlled    Corporations    55 

937.  Other   Appropriations    56 

938.  Bad  Debts   Written   Off 56 

939.  Other   Deductions   from   Surplus 56 


27466 


/?6^  CO 


UNIVERSITY  OF  e\LIFORNL\  LIBRARY 


>•. 


